BANKING AFFAIRS

Detailed explanation-1: -Introduction: Infrastructure Finance Company Infrastructure Finance Company provides credit facilities to the borrowers in the specific infrastructure sectors. The creation of a separate category of NBFC’S (NBFC-IFC), expected to plays a major role in the banking industry as a provider of infrastructure finance.

Detailed explanation-2: -The Reserve Bank has been given the powers under the RBI Act 1934 to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs that meet the 50-50 criteria of principal business.

Detailed explanation-3: -Ans : IDFs are investment vehicles which can be sponsored by commercial banks and NBFCs in India in which domestic/offshore institutional investors, specially insurance and pension funds can invest through units and bonds issued by the IDFs.

Detailed explanation-4: -Stockbroking, Merchant banking NBFCs are regulated by SEBI. RBI is the regulator of those NBFC which deal in lending, accepting deposits, financial leasing. Nidhi and Chitfund companies are regulated by the Department of Company Affairs. Housing Finance Companies are regulated by RBI.