1. Functions of NBFC
•Brokers of loanable funds
•Mobilization of savings
•Channelization of funds into investment
•Stabilize the capital market
•Provide liquidity

2. Types of services provided by NBFCs
•Hire purchase services
•Leasing services
•Housing finance services
•Asset management company
• venture capital companies

3. Conditions of NBFCs
•It is necessary that every NBFC should be registered with RBI
•No one can complete requirements for registration with RBI
•There is ceiling on acceptance of public deposits
•Rate of interest and period of deposit which NBFCs can accept is too
low
•NBFCs regulations which the depositor may note at the times of
investment
•A depositor should bear some aspects in mind while depositing
money with NBFCs
•Rating of NBFCs is necessary before it accept deposit

4. As recognized by RBI the specific
roles of NBFCs' are
•Development of sectors like Transport & Infrastructure
•Substantial employment generation
•Help & increase wealth creation
•Broad base economic development
•Irreplaceable supplement to bank credit in rural
segments
•major thrust on semi-urban, rural areas & first time
buyers / users
•To finance economically weaker sections
•Huge contribution to the State exchequer

5. Why there is a demand for NBFCs
•NBFCs provide prompt, tailor made service with least hassles. This more
than compensates for the higher lending rates of NBFCs as compared to
Banks & FIs
•All customers get direct and easy access to and individual attention of
the top management
•NBFCs cater to a class of borrowers who :-
- Do not necessarily have a high income
- But have adequate net worth
- Are honest and sincere (gauged by the personal touch
maintained with them).
•Deposit mobilization at the doorstep of the depositors with personalized
approach, interest warrants are delivered in advance
•NBFCs provide financial assistance to their borrowers in case of
emergency needs
•NBFCs provide assistance and guidance to their customers in matters
relating to insurance