What is non banking financial institutions?
the non banking financial institutions are the institutions who provide the loans and accepting the deposits from the public directly but they are not well orgnized and regulated from some specific authority. it can be money lenders, pond shops, land lord etc.
Non banking financial institutions are those having separate legal entity and are governed by Ministry of Finance appointed body (i.e. Reserve Bank in India).They can act independently in providing loans, accepting public deposits within the frame work pre determined by the Finance ministry. They are to set aside a part of their capital with Government and public funds are covered under Deposit Insurance scheme upto a certain point to protect public interest in case of any eventuality.
No comments:
Post a Comment