NBFC (Non-Banking Financial Company) is a financial institution that provides banking-like services such as loans, investments, and asset financing but does not hold a banking license.
NBFCs play a crucial role in the financial system by offering loans, credit, and investment services, especially to individuals and businesses that may not easily get loans from banks.
They are regulated by the Reserve Bank of India but cannot accept demand deposits like savings or current accounts.
"Companies like Bajaj Finance provide personal and consumer loans as NBFCs without being a bank."