NBFC (Non-Banking Financial Company)

A Non-Banking Financial Company (NBFC) is a financial institution that provides banking-like services such as loans, credit, and asset financing, but does not hold a banking license and cannot accept demand deposits like savings accounts. NBFCs support the financial system by lending money, investing, or helping people and businesses manage their finances. They are regulated by specific authorities to ensure stability and protect investors, but they operate differently from banks, mainly focusing on specialized financial products and services. NBFCs play a crucial role in filling gaps where traditional banks may have limited reach.