Question

Different types of nonbank finacial institutions

Answer 1

All NBFCs are either deposit taking or Non-deposit taking. If they are non-deposit taking, ND is suffixed to their name (NBFC-ND). The NBFCs which have asset size of Rs.100 Crore or more are known as Systematically Important NBFC. They have been classified so because they can have bearing on financial stability of the country.  The Non-deposit taking NBFCs are denoted as NBFC-NDSI. Under these two broad categories, the different NBFCs are as follows
Asset Finance Company(AFC)
Investment Company (IC)
Loan Companies (LC)
Infrastructure Finance Company (IFC)
Systemically Important Core Investment Company (CIC-ND-SI)
Infrastructure Debt Fund (IDF-NBFC)
Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI)
Non-Banking Financial Company – Factors (NBFC-Factors)