Banking

Definition: Commercial Bank can be described as a financial institution, that offers basic investment products like a savings account, current account, etc to the individuals and corporates. Along with that, it provides a range of financial services to the general public such as accepting deposits, granting loans and advances to the customers. It is a profit making company, … [Read more...] about Commercial Bank

Definition: Central Bank is the apex financial institution of the country, that administers the operations of the banking system. The bank manages and controls the expansion and contraction of the supply of money in the economy. A central bank has no direct interaction with the general public. Indeed, it functions as a banker to the other banks of the country such as … [Read more...] about Central Bank

Definition: Merchant banking can be defined as a skill-oriented professional service provided by merchant banks to their clients, concerning their financial needs, for adequate consideration, in the form of fee. Merchant banks are a specialist in international trade and thus, excel in transacting with large enterprises. Services offered by Merchant Banks Merchant Banks … [Read more...] about Merchant Banking

Definition: The Residuary Non-Banking Company is yet another form of a financial institution engaged in the principal business of accepting deposits, under any scheme or arrangement or in any other form and not being asset financing, investment, loan company. Simply, the Residuary Non-Banking Company primarily deal in accepting deposits in any form and investing these in the … [Read more...] about Residuary Non-Banking Company

Definition: The Chit Fund Company is a financial institution engaged in the principal business of managing, conducting and supervising the chit scheme. The “Chit” is the financial arrangement wherein a certain number of persons/subscribers enter into an agreement that subscribes to a certain sum of money by way of installments over a definite period of time. Each subscriber … [Read more...] about Chit Fund Company

Definition: The Housing Finance Company is yet another form of non-banking financial company which is engaged in the principal business of financing of acquisition or construction of houses that includes the development of plots of lands for the construction of new houses. The Housing Finance Company is regulated by the National Housing Bank. Any non-banking finance company … [Read more...] about Housing Finance Company

Definition: The Non-Banking Financial Company-Factors (NBFC-Factors) is yet another financial company that deals in the principal business of Factoring. The Factoring is a financial transaction wherein the company sells its bills receivables i.e. invoices to a third party called as “factor” at a discount. As per the RBI, the company can be registered as a non-banking … [Read more...] about Non-Banking Financial Company-Factors

Definition: The Systematically Important Core Investment Company (CIC-ND-SI) is a financial company that is principally engaged in the business of acquisition of shares and securities. As per the RBI guidelines, the non-banking financial company is recognized as a systematically important core investment company if it satisfies the following conditions: At least 90% of … [Read more...] about Systematically Important Core Investment Company

Definition: The Non-Banking Financial Company: Micro Finance Institution (NBFC-MFI) is a non-deposit taking financial company that has minimum 85% of its assets in the nature of qualifying assets. The Qualifying Assets are those assets which have a substantial period of time to be ready for its intended use or sale. As per RBI, for a non-banking financial company to be … [Read more...] about Non-Banking Financial Company-Micro Finance Institution

Definition: The Infrastructure Debt Fund Non-Banking Financial Companies or IDF-NBFC are yet another non-deposit accepting financial institutions that purely deals in infusing long-term debt into the infrastructure sector. The debt fund means a pool of investment that holds the array fixed-income instruments such as bonds or debentures. As per RBI, the company shall be … [Read more...] about Infrastructure Debt Fund Non-Banking Financial Companies