CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
A Non-Banking Financial Company (NBFC) is a company registered under the Companies
Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).
NBFCs are doing functions akin to that of banks; however there are a few differences:
(i) An NBFC cannot accept demand deposits;
(ii) An NBFC is not a part of the payment and settlement system and as such an NBFC cannot issue cheques drawn on itself; and
(iii) Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors unlike in case of banks.

1.2 OBJECTIVES


This study represents that how NBFCs are making more profit than banks in INDIA.



What types of NBFCs are there in India and how they are regulated through various regulatory bodies.



Objectives of this study is to compare various NBFCs from different
Sector.



To identify different strength and weakness of various NBFCs in today’s competitive market. 

To identify various opportunity available for NBFCs in India.

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1.3 RESEARCH METHADOLOGY

DATA COLLECTION
There are two methods of data collection that can be considered when collecting data for research purpose. These data collection types include