non banking

8/13/2019 Non banking

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NBFC

Non-banking financial companies, or NBFCs, are financial institutions that provide banking

services, but do not hold a banking license. These institutions are not allowed to take deposits

from the public. Nonetheless, all operations of these institutions are still covered under banking

regulations.

A Non-Banking Financial Company (NBFC) is a company

a) Registered under the Companies Act, 1956,

b) Its principal business is lending, investments in various types of

shares/stocks/bonds/debentures/securities, leasing, hire-purchase, insurance business, chitbusiness, and

c) Its principal business is receiving deposits under any scheme or arrangement in one lump sum

or in installments.

However, a Non-Banking Financial Company does not include any institution whose principal

business is agricultural activity, industrial activity, trading activity or sale/purchase/construction

of immovable property. (Section 45 I (c) of the RBI Act, 1934) . One key aspect to be kept in

view is that the financial activity of loans/advances as stated in 45 I ( c) , should be for activity

other than its own. In the absence of this provision, all companies would have been NBFCs.

What is difference between banks & NBFCs ?

NBFCs lend and make investments and hence their activities are akin to that of banks; however

there are a few differences as given below:

i. NBFC cannot accept demand deposits;

ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques

drawn on itself;

iii. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not

available to depositors of NBFCs, unlike in case of banks.


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PROPOSED SYSTEM

Our project aims to create a website which provides an interface to both customer and employee

of institution. This provides single option for login, and provides different view to both customerand employee. Every user of the website is given with unique password using which he can

login.

The customer can view details of his loan such as balance, last payment details etc. By the same

site the employee can update the database according to the transaction.

The site provides better and efficient service, fast retrieval of information, reduced workload.

Also provide all details of user in single click.

ADVANTAGES

User friendly interface Fast access to database Less errors More Storage Capacity

Search facility Look and Feel Environment Quick transaction


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SYSTEM REQUIREMENTS

SOFTWARE REQUIREMENTS

Front End : PHP

Back End : MYSQL SAERVER

Operating System : WINDOWS XP and above

HARDWARE REQUIREMENTS

RAM : 1GB RAM or more

Processor : Pentium dual core or above (1.86MHZmin)

Hard Disk : 40GB HDD or more

Monitor : minimum 1024 x 768 resolutions

Keyword : Microsoft Standard Keyboard

Mouse : Two button with wheel

non banking

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