- NBFCs are companies registered under the Companies Act.
- They engage in business of loans, advances, and acquisition of securities.
- They also do leasing, hire-purchase, insurance, and chit business.
- NBFCs do not accept demand deposits.
- They cannot issue cheques drawn on themselves.
- They are regulated by RBI (or other regulators like SEBI, IRDA).
- They play a crucial role in providing financial services.
- They often reach segments or areas that traditional banks find difficult to serve.