Solution:A Non-Banking Financial Corporation (NBFC) is a company that is registered under the Companies Act, 1956.
● It is involved in the lending business, hire-purchase, leasing, insurance business, receiving deposits in some cases, chit funds, stocks, and shares acquisition.
● NBFC does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
● NBFCs are regulated by the Reserve Bank of India (RBI).