Can a NBFC give Overdraft services like Banks

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Mangesh (Querist)
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24 September 2008 Dear Sirs,
I have query about NBFC.Currently,all NBFCs do Loan against Shares by way disbusrsement in the Bank A/c of Borrower.Only,banks like ICICI Bank,HDFC Bank provide Overdraft facility against Shares.Can NBFC give Overdraft facility like a Bank.Is there any legal restriction on NBFC not to do Overdraft facility?Pls provide us your view and give existing legal provisions in this regards

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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24 September 2008 NBFC can not engage in banking activities.

Mangesh

Mangesh (Querist)
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24 September 2008 Dear Sir,
I am thankful for your prompt response.
Can you please provide me relevant list of sections in Banking Regulation Act or RBI ACt or NBFC Related Act for reference?
It will be great helpful for me.

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Mangesh

Mangesh (Querist)
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24 September 2008 I am thankful for your prompt response.
Can you please provide me relevant list of sections in Banking Regulation Act or RBI ACt or NBFC Related Act for reference?
It will be great helpful for me.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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26 September 2008 Actually you have to refer to Banking companies Regulation Act.

The very term non-banking is to those companies which are not having banking operations.