What is NBFC?

 A non-banking financial company (NBFC) is a financial institution that provides banking and financial services, such as lending, insurance, and asset management, but does not have a full banking license. NBFCs are regulated by the Reserve Bank of India (RBI) and are subject to certain restrictions on their activities, such as not being allowed to accept deposits from the public.

NBFCs play an important role in the financial system by providing credit and other financial services to individuals and businesses that may not have access to traditional banking services. They may also offer specialized financial products and services, such as microfinance or equipment leasing, that are not available from banks.

There are various types of NBFCs, including housing finance companies, microfinance institutions, and investment companies, among others. NBFCs can be either privately owned or publicly listed, and they may be focused on serving a specific sector or market.

It is important to carefully consider the specific risks and characteristics of an NBFC before investing in or using its products or services, and to seek the advice of a financial advisor or professional if necessary.