NBFC
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What does NBFC stand for in the Indian financial system?
NBFC stands for Non-Banking Financial Company, which is a company registered under the Companies Act and engaged in the business of loans, advances, acquisition of shares/stocks/bonds, leasing, hire-purchase, or insurance business.
What is the full form of NBFC-ND-SI as used by RBI?
Non-Deposit Taking Systemically Important NBFC
Which Act governs the registration and regulation of NBFCs in India?
NBFCs are governed by Chapter III-B of the Reserve Bank of India Act, 1934, which provides the RBI with powers to regulate, supervise, and register NBFCs.
What is the asset size threshold for an NBFC to be classified as systemically important?
Asset size of Rs. 500 crore or more
What is the minimum Net Owned Fund (NOF) required for an NBFC to register with the RBI?
The minimum Net Owned Fund (NOF) required for an NBFC to commence or carry on the business of a non-banking financial institution is Rs. 10 crore, as revised by RBI.
Which type of NBFC is primarily engaged in lending against gold jewellery?
NBFC-Gold Loan Companies
What is the principal business criterion that determines whether a company is classified as an NBFC?
A company is classified as an NBFC if its financial assets constitute more than 50% of total assets and income from financial assets constitutes more than 50% of gross income — this is called the '50-50 test'.
Under SBR framework, NBFCs are classified into how many layers?
Four layers: Base, Middle, Upper, and Top
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