I want to open fixed deposit and I saw that some NBFCs are offering higher interest. I just want to know can NBFC aacept FD? I heard somewhere that they can’t. Is it true?
When someone asks ‘can NBFC accept fixed deposits’, they should consider the authorization by the Reserve Bank of India. I would suggest you to check if NBFC has registered with RBI and sought an authorization or not.
Non Banking Financial Companies which have obtained special authorization by the Reserve Bank of India can only accept fixed deposits. What NBFCs can’t accept is demand deposits.
While many NBFCs offer attractive interest rates on fixed deposits, you should keep in mind that they should, if nothing, have a good CRISIL or ICRA rating. Let me know if you have any more questions.
Cheers!