Non-Banking Financial Companies

Non-Banking Financial Companies (NBFCs) are financial institutions that provide services similar to banks, such as loans, savings, and investment products, but they do not hold a banking license. Unlike banks, NBFCs cannot accept demand deposits like checking accounts. They primarily serve sectors underserved by banks, offering credit to individuals and businesses for various needs. NBFCs play a crucial role in financial stability and development, often providing specialized or faster services, but they are regulated by financial authorities to ensure safety and soundness.