Query Regarding Government Incentives Applicable to NBFCs in India

[Abhijeet Mane]

I would like to seek guidance on whether there are any State or Central Government incentives, schemes, or benefits currently applicable to Non-Banking Financial Companies (NBFCs) in India.

[YAGAY andSUN]

There are no Central or State Government incentive schemes exclusively applicable to NBFCs.

• NBFCs are ineligible for MSME and most industrial incentive schemes.

• Limited indirect benefits may arise through:

  • Credit guarantee participation,

  • Liquidity or refinance facilities,

  • Fintech or start-up related initiatives (case-specific).

• Any benefit available to an NBFC is incidental to its role as a financial intermediary, not as a targeted beneficiary.

AI Summary

No exclusive government incentive schemes for NBFCs in India; only indirect benefits via credit guarantees and fintech initiatives A user asked whether any Central or State Government incentives, schemes, or benefits are currently available specifically for Non-Banking Financial Companies (NBFCs) in India. The response clarified that there are no incentive schemes exclusively targeted at NBFCs at either the Central or State level. NBFCs are generally ineligible for MSME and most industrial incentive schemes. Any advantages they may receive are indirect and incidental, such as participation in credit guarantee arrangements, access to certain liquidity or refinance facilities, or involvement in fintech or start-up related initiatives, depending on the specific case and role of the NBFC as a financial intermediary.