Non-Banking Financial Company

NBFC is a financial institution that offers a range of financial services but does not hold a banking license. Unlike cooperative and commercial banks, NBFCs do not accept demand deposits and are regulated differently. They must adhere to guidelines issued by the Reserve Bank of India (RBI) but are not regulated as stringently as banks.

Regulatory Requirements:

RBI Regulations:

NBFCs must follow RBI regulations related to financial stability, transparency, and operational conduct.

Regular audits and compliance checks are conducted to ensure adherence to regulatory norms.

Financial Stability:

Maintain prescribed levels of capital, liquidity, and reserve requirements to ensure stability and protect the interests of depositors and investors.

Disclosure and Reporting:

Regularly report financial performance and operational details to the RBI to ensure transparency and regulatory oversight.