{"id":4498,"date":"2020-09-18T06:57:07","date_gmt":"2020-09-18T06:57:07","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=4498"},"modified":"2025-09-17T07:04:44","modified_gmt":"2025-09-17T12:34:44","slug":"why-nbfcs-need-to-adopt-video-kyc-right-now","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/why-nbfcs-need-to-adopt-video-kyc-right-now","title":{"rendered":"Why NBFCs Need To Adopt Video KYC Right Now"},"content":{"rendered":"

NBFC<\/strong><\/a><\/span><\/h2>\n

With a record-low GDP, businesses shutting down, and job losses across the board, the stage is set for India\u2019s NBFCs to leap into the fray.\u00a0<\/span><\/p>\n

NBFCs<\/a><\/strong> have traditionally targeted small, medium, and micro-sized enterprises and high-risk segments for credit lending. In the current pandemic-fuelled scenario, these segments are in dire need of credit to continue operations.\u00a0<\/span><\/p>\n

But with the entire economy weighed down by a heavily protracted cash flow due to the constraints imposed by the pandemic, how can NBFCs rise to the occasion and ensure smooth credit provisions to the sectors that need them the most?\u00a0<\/span><\/p>\n

This is a timely and essential issue that will be addressed after getting through some preliminaries.\u00a0<\/span><\/p>\n

\"Video-KYC\"<\/p>\n

What is an NBFC<\/a>?<\/strong><\/span><\/h2>\n

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956<\/strong> engaged in the business of loans and advances, acquisition of shares, stocks, bonds, debentures, or securities issued by the Government or local authority or other marketable securities of a similar nature.\u00a0<\/span><\/p>\n

This makes it sound like an NBFC<\/strong> is quite similar to a bank, but there are some key differences.<\/span><\/p>\n