As the name implies, an NBFC (Non-Banking Financial Company) is a financial institution that is not a bank. To put it another way, an NBFC is a firm that specializes in finance and must be established under the Companies Act of 1956. This NBFC's business is to provide loans and to deal with the acquisition of market instruments such as stocks, bonds, and securities, as well as other securities of a similar kind.
In general, a non-bank financial company which is shortly known as NBFC, is a financial establishment that does not hold a complete banking license and is not regulated by a national or international banking authority. Investment, risk pooling, contractual savings, and market brokering are among services that NBFCs enable.
India's financial sector is vast and complex. The Indian financial sector includes commercial banks and non-banking financial companies, or NBFCs. Let's start with a definition of NBFCs. As the name implies, an NBFC (Non-Banking Financial Company) is a financial institution that is not a bank. To put it another way, an NBFC is a firm that specializes in finance and must be established under the Companies Act of 1956.
