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Financial Domain (Financial Organizations (Types (Difference (NBFC cannot…

- - - - NBFI
        
        Development Finance Companies
        
        finance to public and private sector
        
        promote development
        
        funded by government
        
        National Bank of Agriculture and Rural Development(NABARD)
        
        Indian Finance Corporation of India(IFCI)
        
        Investment Companies
        
        invest money on behalf of its shareholders
        
        Franklin Templeton Investment
        
        Fidelity
        
        securities, properties, debts, other funds
        
        shareholders in turn share profits and losses resulting from investment in assets
        
        Leasing Companies
        
        raise finance to pay for assets,
        
        Infrastructure limited and Financial Services(IL&FS)
        
        ARVAL
        
        entities in business
        
        lessor
        
        owner of asset
        
        is a financial company
        
        purchase assets and lease to customer
        
        company will get rentals or installments from customer for use of that asset
        
        will cover the cost of asset and earn interest from the rentals
        
        lessee
        
        who takes the asset on lease
        
        selects a asset which may be a vehicle, equipment or software
        
        Brokerage Firms
        
        buying and selling of financial securities
        
        intermediary between buyers and sellers
        
        compensated via commission
        
        when a trade order for a stock is carried out, an individual often pays a transaction fee or commission for the brokerage company's efforts to execute the trade. Some of the examples are Kotak Securities limited and Reliance Money who operate in India.
        
        Foreign Exchange Companies
        
        currency exchange
        
        international payments
        
        buy and sell currency notes and traveler cheques
        
        eg: Thomas Cook, Western Union Money Transfer
    - - NBFC cannot accept demand deposits
      - NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself
      - Deposits in NBFCs are not insured
- - - - major changes in bank operations
      - telecommunications and computing
      - increase in size and geographic spread
- - - - They are owned by private individuals and public institutions like cantons and cantonol banks
      - The confederation or government has no ownership in the bank
    - - The central bank is the banker of other banks in the country. It does not deal with public but deals with other banks