Submitted by Dhiraj D.

Ghongde

Project Guide Dr.A.M.Sheikh

Vilasrao Deshmukh College Of Engineering & Technology, Mauda,Nagpur.

DEFINITIONS OF NBFC. Non-Banking Financial Company has been defined as: (i) A non-banking institution, which is a company and which has its principal business the receiving of deposits under any scheme or lending in any manner. (ii) Such other non-banking institutions, as the bank may with the previous approval of the central government and by notification in the official gazette, specify.

NBFCS provide a range of services such as hire purchase finance, equipment lease finance, loans, and investments. NBFCS have raised large amount of resources through deposits from public, shareholders, directors, and other companies and borrowing by issue of non-convertible debentures, and so on.

Non-Banking Financial Companies (NBFCs) play a vital role in the context of Indian Economy. They are indispensible part in the Indian financial system because they supplement the activities of banks in terms of deposit mobilization and lending. They play a very important role by providing finance to activities which are not served by the organized banking sector. So, most the committees, appointed to investigate into the activities, have recognized their role and have recognized the need for a well-established and healthy non-banking financial sector. Non-banking institution which is a company and which has its principal business of receiving deposits under any scheme of arrangement or any other manner, or lending in any manner is also a non- banking financial company.

The Reserve Bank of India Act, 1934 was amended on 1st December, 1964 by the Reserve Bank Amendment Act, 1963 to include provisions relating to non-banking institutions receiving deposits and financial institutions. It was observed that the existing legislative and regulatory framework required further refinement and improvement because of the rising number of defaulting NBFCs and the need for an efficient and quick system for Redressed of grievances of individual depositors. Given the need for continued existence and growth of NBFCs, the need to develop a framework of prudential legislations and a supervisory system was felt especially to encourage the growth of healthy NBFCs and weed out the inefficient ones.

TRADITIONAL APPROACH OF CLASSIFICATION Equipment Leasing Co. Hire Purchase Company Loan Company Investment Company

MODERN APPROACH OF CLASSIFICATION Asset Finance Company Loan Company Investment Company RESIDUARY NBFC

The confined objectives of the present study are: To analyze the market of NBFCs in India. To study the financials of NBFCs. To know what the people think about the non banking financial sector. To know about the views of people regarding various departments of NBFCs. To study the current market share of NBFCs. Assist rural community, particularly the small farmers, in raising their productivity and income levels through timely delivery of credit, advisory and ancillary services. Establish and provide backward and forward linkages to strengthen agri. value added commodity chains. Engage in public - private and wholesale - retail partnership to deepen outreach and reduce operating cost.

DATA COLLECTION1) Primary data 2) Secondary data PRIMARY DATA The primary data required for this study was collected by visiting the financial institute and analyzing the information provided by them. SECONDARY DATA The secondary data for the research was collected from books and internet websites, annual reports etc. The source of the secondary data was NBFCs and Internet.

Competitive scenario in NBFC.

Determination of mobilizing money in society. Infrastructure development. Generating revenue. GDP increase.

The project is based on secondary data.

Possibility of error in data collection.

Geographical limitation. Time limitation.

 NBFCs are gaining momentum in last few decades with wide

variety of products and services. NBFCs collect public funds and provide loan able funds. There has been significant increase in such companies since 1990s. They are playing a vital role in the development financial system of our country. The banking sector is financing only 40 per cent to the trading sector and rest is coming from the NBFC and private money lenders. At the same line 50 per cent of the credit requirement of the manufacturing is provided by NBFCs. 65 per cent of the private construction activities was also financed by NBFCs. Now they are also financing second hand vehicles. NBFCs can play a significant role in channelizing the remittance from abroad to states such as Gujarat and Kerala.