What is NBFC?

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956. The companies predominantly engaged in financial activity are only getting registered with RBI as NBFCs. In other words,  when a company’s financial assets out of the total assets are more than 50 percent and the company’s gross income from financial assets…

Co-operative Banking in India

The Co-operative Banks in India are primarily registered as cooperative societies under the provisions of either the State Cooperative Societies Act of the State concerned or the Multi State Cooperative Societies Act, 2002 if the area of operation of the bank extends beyond the boundaries of one state. The banking related functions of Urban Co-operative…

What is a financial system?

In simple words financial system can be described as exchange of money to and from investors and borrowers. Financial system is also referred as distribution of excess capital mobilised from some sectors of an economy to other needy sectors.  Money, credit and finance are media of exchange in financial system. Financial system is apparent in…

What is the role of EXIM Bank?

EXIM bank of India was established by Government of India in 1982 under the Export-Import Bank of India Act, 1981 for the purpose of financing, facilitating and promoting India’s international trade. The bank conducts export market studies and assists Indian Joint ventures in third countries. The bank offers international merchant banking services and financing in…

What is the role of FEDAI ?

The banks which are officially authorized by RBI to deal in foreign exchange transactions are called ‘Authorised Dealers’ (ADs). Foreign Exchange Dealers Association of India (FEDAI) is an association of ‘Authorised Dealers’ set up in 1958 under sec 25 of companies’ act 1956. As per RBI guidelines, it is obligatory on the part of all…

What is Convertible and Non-Convertible Debentures?

Debentures are issued by corporates including NBFCs to raise resources for their upcoming expenses or their business expansions. In other words, debentures are unsecured loans taken by companies from the public (other than accepting deposits) by issuing instruments of debt, acknowledging money lent, and guaranteeing repayment with interest. The investors subscribe to debentures only based…