Question

Describe the main types of non-bank Financial Institutions (FI). Are there any non-bank FI’s that are allowed to accept deposits?

Answer 1

Various types of non banking Financial institutions are as follows-

A. Investment banking companies who are related to to various kinds of investment and mergers and acquisition along with their also play a role in being the underwriter for various initial public offer.

B.house financing companies are also used for special purposes for providing housing financing loans and they are specifically interested in housing sector of the economy

C .consumer finance companies which are related to offering loans to various consumer needs which can be short term to long term in nature and they are related to providing loans to different consumers.

D. Hedge fund and private equity funds are also related to non banking financial companies and these are trying to provide investment related facilities.

E. Peer to Peer financing is a new concept in the field of internet banking and it is also highly popular in order to provide with various kinds of loans on internet.

No, As in India, there are no non banking financial institution that are allowed to accept deposits from public.