A Non- Banking Financial Company is a company registered under Companies Act, 2013 or earlier Companies Act, 1956 engaged in the business of providing loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by government or local authority or other marketable securities, leasing, hire-purchase, insurance business, chit business.

NBFCs are regulated under the provision of RBI, it gets mandatory for them to get it registered with RBI. NBFCs can commence its operations only after obtaining the Certificate of NBFC Registration from RBI. It provides banking facilities to the unbanked segments of the society as per their needs.