When you want to format an USB drive you only see the FAT and FAT 32 options and you want to use NTFS file system.
1. Click Start, click Control Panel, and Click System.
2. Select the Hardware Tab, and press the device manager button.
3. Click on the Disk drives , select the usb device, right click and press properties.
4. Go to the Policies Tab and press Optimize for Perfomance.
5. Now, if you try to format you will see the NTFS option on the list.