Question

What is the full form of 'NBFC' as used in the financial sector?

• A. New Banking Finance Corporation
• B. Non-Banking Finance Company
• C. New Business Formation Company
• D. Net Banking and Finance Cooperative

Answer 1

The correct option is B Non-Banking Finance Company

Non-Banking Financial Companies (NBFCs): The financial services sector consists of various types of institutions .Among them, Non-Banking Financial Companies are financial intermediaries engaged primarily in the business of accepting deposits and delivering credit. They channelize the scarce financial resources to capital formation. They supplement the role of banking sector in meeting the increasing financial needs of the corporate sector, delivering credit to the unorganised sector and to small local borrowers. Since NBFCs have more flexible structure as compare to banks, they take quick decisions, assume greater risks and tailor-made their services and charges according to the needs of the clients. They broaden the range of financial services. These are partly fund-based and partly fee-based.