Regulatory Environment For NBFCs In India And Its Impact On The Industry

Ofbusiness27 Jan, 2023Finance

A Non-Banking Financial Company (NBFC) is a financial institution that provides a wide range of financial products and services similar to traditional banks, but they are not subject to the same level of regulation and oversight.They are regulated by the Reserve Bank of India (RBI) under the Reserve Bank of India Act, 1934. NBFCs and financing companies play a vital role in providing credit to the economy, especially in times of economic stress when traditional banks may be reluctant to lend. They also offer more flexibility and customization in their loan products, which can be attractive to borrowers. RBI-registered NBFCs like Oxyzo play a critical role in the financial ecosystem, by providing a wide range of financial products and services to businesses that may not have access to traditional banking services.