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NBFC registered under the Companies Act 1956 in India . It offers some banking facilities like  loan and credit facilities , money market , merger activities  but , it cannot accept demand deposits and they do not take part in payment and settlement system (ie, they cannot issue cheques etc)

               Requirements for Registration with RBI

1) It should be a company registered under section 3 of companies act 1956
2) It should have minimum net owned fund of   200 lakh 


              What are Systemically important NBFC


NBFC  whose asset size is ₹ 500 cr or more as per last audited balance sheet are considered as systemically important NBFC . Their health affect the financial stability of the overall economy .
NBFC plays an important role in the Indian economy . They provide services such as personal loans ,housing loans, insurance and loans for purchasing commercial vehicles,  machinery and farm equipment etc .  NBFC helps to achieve ‘ Financial inclusion’ goals  by providing services to the  unbanked population in rural , semi-rural areas and they are also important source to offer financial  service to MSME Enterprises.

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