nbfc

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Querist : Anonymous (Querist)

07 December 2009 what is the difference between nbfc and normal company???

Rasesh

Rasesh (Expert)
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07 December 2009 An NBFC is a company registered with the RBI with an NBFC. Non-Banking Finance Company is company registered with the RBI as such and is allowed to perform certain kind of activities.

A Company which satisfies the following two conditions can register itself as an NBFC:
1) 50% of its total income is derived out of financial activity.
2) 50% of its total assets are financial assets.

However, a company which is doing activities of an NBFC is also classified as an deemed NBFC, if it is not registered with RBI. Such a company would be liable for default under the RBI guidelines.

A Normal Company is any other company with carries out any other business activity.