NBFC Registration in India has been simplified by Reserve Bank of India. NBFC stands for Non-Banking Financial Companies which deals in various financial activities like providing loans, asset finance, microfinance, investment in securities etc. NBFC raise their funds from different sources such as financial companies like banks, insurance companies, public deposits through the issue of debentures, commercial papers, and other inter-corporate loans.
Only those NBFC which have been granted a license depicting their eligibility to accept deposits from the public shall proceed for the same. The main business activity of the NBFCs is to raise capital funds from public depositors and investors and then lend to borrowers as per the rules and regulations prescribed by the Reserve Bank of India.