Are NBFC governed by RBI?

 Yes, non-banking financial companies (NBFCs) in India are regulated by the Reserve Bank of India (RBI), the country's central bank and regulatory authority for the financial sector. NBFCs are subject to certain regulatory requirements and restrictions on their activities, which are designed to ensure the stability and integrity of the financial system.

The RBI has the authority to issue guidelines and regulations for the operation of NBFCs, and it is responsible for supervising and regulating their activities to ensure compliance with these guidelines. The RBI also has the power to take enforcement action against NBFCs that violate regulatory requirements, including imposing fines and revoking licenses.

NBFCs are required to register with the RBI and obtain a certificate of registration in order to operate in India. They are also subject to certain prudential norms, such as capital adequacy requirements and asset classification norms, which are designed to ensure that they have sufficient financial resources to meet their obligations.

It is important for investors and consumers to be aware of the regulatory framework that applies to NBFCs, and to carefully consider the specific risks and characteristics of an NBFC before investing in or using its products or services. It is also advisable to seek the advice of a financial advisor or professional if necessary