What are NBFCs? Why are they picking up?
NBFCs are Non-Banking Financial Companies that deal with loans and other financial activities but they don't have a banking license instead they are registered under the Companies Act 1956. A company with the primary business of receiving deposits under any scheme in a lump sum or in installments or in any other manner is also known as Non-Banking Financial Company (Residuary Non-Banking Company). Activities NBFCs are Involved in Non-Banking Financial Companies are primarily involved in the activities such as Loans and Advances, Hire and Purchases, Leasing, Insurance Business, Chit Business, Acquisition of Shares, Debentures, Stocks, etc. Activities NBFCs cannot be Involved in Non-Banking Financial Companies cannot be the institutions that are primarily involved in Agriculture, Industrial Activity, Sale, Purchase or Construction of any immovable property, Sale or Purchase of any Goods other than Securities. Criteria to become an NBFC The Reserve Bank of India has i