Non Banking Financial Companies (NBFCs)

Non Banking Financial Companies (NBFCs)

Non-banking financial institutions are institutions that operate in the financial sector and do not perform all the functions provided by banks. Non-banking financial institutions are institutions registered under the Companies Act, 1956, which carry out financial activities such as insurance, chit fund business, share business, loans, advances, leasing, hire purchase etc. The basic functions of non-banking financial institutions are accepting deposits and providing loans. Ombudsman Scheme for Non-Banking Financial Institutions came into effect from February 23, 2018. Examples of non-banking financial institutions include LIC,mutual fund institutions, insurance companies, Financial Corporation and Kerala State Financial Enterprises (KSFE).

Mutual Fund is a system that helps raise money from investors and invest it in stock markets, bonds, and infrastructure development sectors. Mutual Fund Institutions operating in the public sector are UTI, LIC Mutual Fund, SBI Mutual Fund etc. The year in which India's first mutual fund, UTI, was launched is 1964. Institutions that provide financial protection for the lives and property of individuals are Insurance institutions. The financial institution implementing the Chief Minister's Entrepreneurship Development Scheme is KFC (Kerala Financial Corporation).