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Question

What is the meaning of NBFC?
  • Non-Banking Financial Corporation
  • National Bank Finance Company
  • Non-Banking Finance Company
  • National Bank Financial Corporation
Answer- C
An NBFC refers to a firm that is incorporated under the Companies Act, 1956, and provides banking services, yet lacks a banking license.

Unlike traditional banks, NBFCs are not bound by state regulatory requirements and oversight. Some examples of NBFCs include investment banks, insurance companies, mortgage lenders, money market funds, private equity funds, hedge funds, and P2P lenders.