23-06-2012, 04:51 PM
An Overview of the Indian NBFC Sector Performance in 2010, prospects in 2011
Indian NBFC Sector Performance.pdf (Size: 395.61 KB / Downloads: 207)
Significance of NBFCs in India:
According to the Economic Survey 2010-11, it has been reported that NBFCs as a whole
account for 11.2 per cent of assets of the total financial system. With the growing
importance assigned to financial inclusion, NBFCs have come to be regarded as
important financial intermediaries particularly for the small-scale and retail sectors.
In the multi-tier financial system of India, importance of NBFCs in the Indian financial
system is much discussed by various committees appointed by RBI in the past and RBI
has been modifying its regulatory and supervising policies from time to time to keep pace
with the changes in the system.
Other Companies
Asset Finance Company (AFC)
AFC would be defined as any company which is a financial institution carrying on as its
principal business the financing of physical assets supporting productive / economic
activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and
material handling equipments, moving on own power and general purpose industrial
machines. Financing of physical assets may be by way of loans, lease or hire purchase
transactions.
Principal business for this purpose is defined as aggregate of financing real/physical
assets supporting economic activity and income arising therefrom is not less than 60% of
its total assets and total income respectively.
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