NBFC stands for Non-Banking Financial Company. It refers to a financial institution that offers various banking services but does not hold a banking license. Unlike traditional banks, NBFCs cannot accept demand deposits or provide checking account services. They are primarily involved in activities such as providing loans, asset financing, investment in financial assets, and offering leasing services. NBFCs play a crucial role in the financial sector by complementing the banking system and catering to sectors that may be underserved by banks, such as small businesses and certain consumer segments. They are regulated by financial authorities in their respective countries, which ensures a level of oversight and operational guidelines.
The Transformative Power of NBFCs The Non-Banking Financial Companies (NBFCs) sector is on the brink of an unprecedented evolution. **Over the last two years, growth has surged**, driven by innovative…