BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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New Banking Finance Corporation
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Non Banking Finance Company
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New Business Formation Company
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Net Banking & Finance Cooperative
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Detailed explanation-1: -Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops.
Detailed explanation-2: -What is a NBFC? A Non-Banking Financial Corporation is a company that is registered under the Companies Act, 1956 of the Companies Act, 2013 and is involved in the lending business, hire-purchase, leasing, insurance business, receiving deposits in some cases, chit funds, stocks, and shares acquisition, etc.
Detailed explanation-3: -The full form of NBFC is the Non-Banking Financial Companies. It relates to assets institutions providing financial services without the need for a banking licence or without a bank’s legal definition being fulfilled.
Detailed explanation-4: -Advantages of NBFC: Can provide loans and credit facilities. Can trade in money market instruments. Can do wealth management such as managing portfolios of stocks and shares. Can underwrite stock and shares and other obligations.