{"id":226936,"date":"2025-09-04T23:33:49","date_gmt":"2025-09-04T18:03:49","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=226936"},"modified":"2025-09-26T09:49:38","modified_gmt":"2025-09-26T04:19:38","slug":"nbfcs-structure-functions-and-regulations","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/","title":{"rendered":"NBFC&#8217;s Structure, Functions, and Regulations"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#What_are_NBFCs\" >What are NBFCs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Importance_of_NBFCs_in_the_Financial_System\" >Importance of NBFCs in the Financial System<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Objectives_of_Studying_NBFCs\" >Objectives of Studying NBFCs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Functions_of_NBFCs\" >Functions of NBFCs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#NBFCs_vs_Banks\" >NBFCs vs Banks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Exemptions_From_RBI_Registration\" >Exemptions From RBI Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Scale-Based_Regulation_SBR_Framework\" >Scale-Based Regulation (SBR) Framework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Classification_of_NBFCs\" >Classification of NBFCs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Recent_Developments_in_NBFC_Regulations\" >Recent Developments in NBFC Regulations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#Role_of_NBFCs_in_Indias_Growth\" >Role of NBFCs in India\u2019s Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#FAQS\" >FAQS<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Non-Banking Financial Companies (NBFCs) are financial institutions that offer banking-like services such as loans, credit, investments, and asset financing but do not hold a banking license. They play a critical role in India\u2019s financial system by reaching segments of the population and sectors often underserved by traditional banks. NBFCs are registered under the Companies Act, 2013 and regulated mainly by the Reserve Bank of India (RBI) under the RBI Act, 1934.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_NBFCs\"><\/span>What are NBFCs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per Section 45-I(f) of the RBI Act, 1934, an NBFC is a company engaged in the business of loans and advances, acquisition of shares, stocks, bonds, debentures, or securities, leasing, hire purchase, insurance, chit funds, or any similar financial activity. However, they do not include institutions engaged in agricultural activities, industrial production, purchase\/sale of goods, or immovable property transactions.<\/p>\n\n\n\n<p>To operate as an NBFC, a company must:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Obtain a Certificate of Registration (CoR) from RBI.<\/li><li>Maintain a minimum Net Owned Fund (NOF) of \u20b9200 lakhs.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_NBFCs_in_the_Financial_System\"><\/span>Importance of NBFCs in the Financial System<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFCs have emerged as key players in promoting financial inclusion by providing credit to small businesses, infrastructure projects, and individuals without formal banking access. They complement banks by diversifying financial products and catering to niche markets like vehicle loans, gold loans, microfinance, and housing finance. Their flexibility, quick disbursal of loans, and sector-focused approach make them vital for sustaining India\u2019s inclusive economic growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_Studying_NBFCs\"><\/span>Objectives of Studying NBFCs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For exam aspirants, especially those preparing for LIC AAO, SBI RBI Grade B, IBPS, and SEBI exams, understanding NBFCs is essential. Key learning objectives include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Knowing the definition and scope of NBFCs under the RBI Act.<\/li><li>Understanding their role in economic growth and financial inclusion.<\/li><li>Identifying different types of NBFCs based on activity, liability, and size.<\/li><li>Learning about recent regulatory changes such as the Scale-Based Regulation (SBR) framework.<\/li><li>Comparing NBFCs with banks in terms of functions and limitations.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Functions_of_NBFCs\"><\/span>Functions of NBFCs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFCs perform several important functions in India\u2019s financial ecosystem. These functions make NBFCs an essential complement to banks in expanding the reach of credit and financial services.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Providing credit and loans<\/strong> to individuals, small businesses, and corporates.<\/li><li><strong>Financing infrastructure projects<\/strong>, housing, and vehicle purchases.<\/li><li><strong>Offering investment avenues<\/strong> through bonds, debentures, and securities.<\/li><li><strong>Promoting financial inclusion<\/strong> by serving rural and semi-urban populations.<\/li><li><strong>Supporting economic development<\/strong> by channeling funds into productive activities.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NBFCs_vs_Banks\"><\/span>NBFCs vs Banks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Though NBFCs provide services similar to banks, they differ in key aspects:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>NBFCs cannot accept demand deposits like banks.<\/li><li>NBFC depositors are not covered under DICGC insurance.<\/li><li>NBFCs are not part of the payment settlement system.<\/li><li>NBFCs are not required to maintain CRR but must hold 15% of public deposits in approved securities.<\/li><li>Unlike banks, NBFCs focus more on niche markets like personal loans, gold loans, and infrastructure financing.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exemptions_From_RBI_Registration\"><\/span>Exemptions From RBI Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Certain financial entities, though NBFC-like, are exempt from RBI registration due to regulation by other authorities. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Venture Capital Funds, Merchant Banking companies, and Stock Broking companies registered with SEBI.<\/li><li>Insurance companies registered with IRDAI.<\/li><li>Nidhi Companies notified under the Companies Act.<\/li><li>Chit fund companies regulated under the Chit Funds Act, 1982.<\/li><li>Stock Exchanges and Mutual Benefit companies.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scale-Based_Regulation_SBR_Framework\"><\/span>Scale-Based Regulation (SBR) Framework<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In October 2023, RBI introduced the Scale-Based Regulation (SBR) to strengthen supervision of NBFCs. This framework categorizes NBFCs into four layers based on size, risk, and activity:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Base Layer (NBFC-BL)<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Non-deposit-taking NBFCs with asset sizes below \u20b91,000 crore.<\/li><li>Includes NBFC-P2P, NBFC-AA, NOFHC, and NBFCs without public funds\/customer interface.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Middle Layer (NBFC-ML)<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>All deposit-taking NBFCs.<\/li><li>Non-deposit-taking NBFCs with assets of \u20b91,000 crore and above.<\/li><li>Includes CICs, HFCs, NBFC-IFCs, IDF-NBFCs, and standalone primary dealers.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Upper Layer (NBFC-UL)<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Top 10 large NBFCs and others identified by RBI as systemically significant.<\/li><li>Subject to <strong>enhanced regulatory norms<\/strong>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Top Layer (NBFC-TL)<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Ideally empty but may include NBFCs posing extreme systemic risk.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Classification_of_NBFCs\"><\/span>Classification of NBFCs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFCs are classified based on liabilities, activities, and size.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Liabilities-Based Classification<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>NBFC-D (Deposit-Taking)<\/strong> \u2013 Accept public deposits under strict RBI norms.<\/li><li><strong>NBFC-ND (Non-Deposit Taking)<\/strong> \u2013 Rely on borrowings such as loans or debentures.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Activity-Based Classification<\/h3>\n\n\n\n<p>NBFCs are further divided into specialized categories based on functions:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Type of NBFC<\/strong><\/td><td><strong>Activity<\/strong><\/td><\/tr><tr><td>Investment &amp; Credit Company (ICC)<\/td><td>Lending and investments<\/td><\/tr><tr><td>NBFC-IFC<\/td><td>Infrastructure finance<\/td><\/tr><tr><td>Core Investment Company (CIC)<\/td><td>Group company investments<\/td><\/tr><tr><td>NBFC-IDF<\/td><td>Infrastructure debt funding<\/td><\/tr><tr><td>NBFC-MFI<\/td><td>Microfinance for low-income groups<\/td><\/tr><tr><td>NBFC-Factor<\/td><td>Factoring of receivables<\/td><\/tr><tr><td>NBFC-NOFHC<\/td><td>Promoter holding companies for banks<\/td><\/tr><tr><td>Mortgage Guarantee Company (MGC)<\/td><td>Loan guarantees<\/td><\/tr><tr><td>NBFC-AA<\/td><td>Account aggregation services<\/td><\/tr><tr><td>NBFC-P2P<\/td><td>Peer-to-peer lending platforms<\/td><\/tr><tr><td>Housing Finance Companies (HFCs)<\/td><td>Housing credit<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Size-Based Classification<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Systemically Important NBFCs (NBFC-ND-SI)<\/strong> \u2013 Non-deposit taking NBFCs with assets above \u20b9500 crore.<\/li><li>Smaller NBFCs below this threshold are considered less risky.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Developments_in_NBFC_Regulations\"><\/span>Recent Developments in NBFC Regulations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>RBI has tightened norms for capital adequacy and governance in large NBFCs.<\/li><li>Microfinance guidelines (2022) ensure fair lending and protection of small borrowers.<\/li><li>The SBR framework (2023) enhances risk-based regulation.<\/li><li>NBFCs are increasingly subject to audit and disclosure requirements to improve transparency.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_NBFCs_in_Indias_Growth\"><\/span>Role of NBFCs in India\u2019s Growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFCs contribute significantly to India\u2019s economy by:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Financing infrastructure and housing projects.<\/li><li>Providing last-mile credit in rural and semi-urban areas.<\/li><li>Supporting entrepreneurship and small businesses.<\/li><li>Reducing dependence on traditional banks.<\/li><\/ul>\n\n\n\n<p>Their growing importance makes NBFCs a critical topic for competitive exams and future financial professionals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQS\"><\/span>FAQS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1756986716501\"><strong class=\"schema-faq-question\">Q1. What is an NBFC?<\/strong> <p class=\"schema-faq-answer\">A Non-Banking Financial Company (NBFC) is a financial institution registered under the Companies Act, 2013 that provides loans, investments, and other financial services but does not have a banking license. They are regulated by the RBI under the RBI Act, 1934.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986851435\"><strong class=\"schema-faq-question\">Q2. How are NBFCs different from banks?<\/strong> <p class=\"schema-faq-answer\">NBFCs cannot accept demand deposits, are not part of the payment settlement system, and their deposits are not insured under DICGC. However, they provide loans, credit, and financial services similar to banks.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986868597\"><strong class=\"schema-faq-question\">Q3. What is the minimum capital requirement for NBFC registration?<\/strong> <p class=\"schema-faq-answer\">An NBFC must have a minimum Net Owned Fund (NOF) of \u20b9200 lakhs and obtain a Certificate of Registration (CoR) from RBI before starting operations.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986882048\"><strong class=\"schema-faq-question\">Q4. What are the main functions of NBFCs?<\/strong> <p class=\"schema-faq-answer\">NBFCs provide loans, finance infrastructure and housing, support small businesses, offer investment services, and promote financial inclusion in rural and semi-urban areas.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986897421\"><strong class=\"schema-faq-question\">Q5. What is the Scale-Based Regulation (SBR) framework for NBFCs?<\/strong> <p class=\"schema-faq-answer\">Introduced in October 2023, the SBR framework classifies NBFCs into four layers\u2014Base Layer, Middle Layer, Upper Layer, and Top Layer\u2014based on size, activity, and risk. This ensures risk-based regulation.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986913484\"><strong class=\"schema-faq-question\">Q6. What are deposit-taking and non-deposit-taking NBFCs?<\/strong> <p class=\"schema-faq-answer\">NBFC-D: Deposit-taking NBFCs that can accept public deposits under RBI regulations.<br\/>NBFC-ND: Non-deposit-taking NBFCs that raise funds through borrowings, loans, or debentures.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986938791\"><strong class=\"schema-faq-question\">Q7. What are the activity-based types of NBFCs?<\/strong> <p class=\"schema-faq-answer\">NBFCs are categorized into types such as Investment &amp; Credit Companies (ICC), Microfinance Institutions (MFI), Infrastructure Finance Companies (IFC), Housing Finance Companies (HFC), NBFC-Factors, NBFC-P2P, NBFC-AA, and others.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986955506\"><strong class=\"schema-faq-question\">Q8. Are NBFCs covered under deposit insurance?<\/strong> <p class=\"schema-faq-answer\">No, deposits in NBFCs are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), unlike banks where deposits up to \u20b95 lakhs are insured.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986980879\"><strong class=\"schema-faq-question\">Q9. Which NBFCs are exempted from RBI registration?<\/strong> <p class=\"schema-faq-answer\">Entities like Venture Capital Funds, Stock Broking companies, Insurance companies (regulated by IRDAI), Nidhi companies, and Chit funds are exempted since they are regulated by other authorities.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1756986998174\"><strong class=\"schema-faq-question\">Q10. Why are NBFCs important for India\u2019s economy?<\/strong> <p class=\"schema-faq-answer\">NBFCs expand credit access to underserved segments, finance infrastructure, support small borrowers, and complement banks in deepening financial inclusion and economic growth.<\/p> <\/div> <\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/union-bank-apprentice-salary\/\">Union Bank Apprentice Salary 2026, Stipend and Job Profile Details<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/union-bank-of-india-apprentice-syllabus\/\">Union Bank Apprentice Syllabus 2026 &amp; Exam Pattern<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/union-bank-of-india-apprentice-recruitment\/\">Union Bank Apprentice Recruitment 2026, Apply 1865 Posts<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/bank-merger-list\/\">Bank Mergers List in India, 1993 to 2026, Latest Updates<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/nicl-assistant-vs-ibps-po-mains\/\">NICL Assistant Mains vs IBPS PO Mains 2026: Detailed Comparison<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/banking-terms-for-ibps-po-interview\/\">IBPS PO Interview 2026: Download Important Banking Terms PDF<\/a><\/li>\n<\/ul>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Non-Banking Financial Companies (NBFCs) are financial institutions that offer banking-like services such as loans, credit, investments, and asset financing but<\/p>\n","protected":false},"author":60,"featured_media":229423,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,31],"tags":[17936],"class_list":["post-226936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-bank-exams","tag-nbfcs","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NBFCs Structure, Functions, and Regulations<\/title>\n<meta name=\"description\" content=\"NBFCs in India: Learn structure, functions, types, and RBI regulations. Key notes for banking, LIC AO, and competitive exam preparation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NBFC&#039;s Structure, Functions, and Regulations\" \/>\n<meta property=\"og:description\" content=\"Non-Banking Financial Companies (NBFCs) are financial institutions that offer banking-like services such as loans, credit, investments, and asset\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/\" \/>\n<meta property=\"og:site_name\" content=\"Oliveboard\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Oliveboard\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-04T18:03:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-26T04:19:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"730\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Tripti Mishra\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Oliveboard\" \/>\n<meta name=\"twitter:site\" content=\"@Oliveboard\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tripti Mishra\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/\"},\"author\":{\"name\":\"Tripti Mishra\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/d85e63b0781e1a55771b9894184814a5\"},\"headline\":\"NBFC&#8217;s Structure, Functions, and Regulations\",\"datePublished\":\"2025-09-04T18:03:49+00:00\",\"dateModified\":\"2025-09-26T04:19:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/\"},\"wordCount\":1212,\"publisher\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp\",\"keywords\":[\"NBFCs\"],\"articleSection\":[\"Articles\",\"Bank Exams\"],\"inLanguage\":\"en-US\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/\",\"name\":\"NBFCs Structure, Functions, and Regulations\",\"isPartOf\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp\",\"datePublished\":\"2025-09-04T18:03:49+00:00\",\"dateModified\":\"2025-09-26T04:19:38+00:00\",\"description\":\"NBFCs in India: Learn structure, functions, types, and RBI regulations. Key notes for banking, LIC AO, and competitive exam preparation.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986716501\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986851435\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986868597\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986882048\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986897421\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986913484\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986938791\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986955506\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986980879\"},{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986998174\"}],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp\",\"contentUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp\",\"width\":730,\"height\":480,\"caption\":\"NBFCs-Structure-Functions-and-Regulations\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.oliveboard.in\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bank Exams\",\"item\":\"https:\/\/www.oliveboard.in\/blog\/category\/bank-exams\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"NBFC&#8217;s Structure, Functions, and Regulations\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#website\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/\",\"name\":\"Oliveboard\",\"description\":\"Free Govt. Exam Alerts &amp; Resources\",\"publisher\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.oliveboard.in\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#organization\",\"name\":\"Oliveboard\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png\",\"contentUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png\",\"width\":150,\"height\":40,\"caption\":\"Oliveboard\"},\"image\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Oliveboard\",\"https:\/\/x.com\/Oliveboard\",\"https:\/\/www.instagram.com\/oliveboard.in\/\",\"https:\/\/www.youtube.com\/channel\/UCRvrHAyNdOMI_JBkE2pjZtw?sub_confirmation=1\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/d85e63b0781e1a55771b9894184814a5\",\"name\":\"Tripti Mishra\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/e9ff3153b7365669b619433e04937baec4da53cdb38c345d8283a33479dba3b6?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/e9ff3153b7365669b619433e04937baec4da53cdb38c345d8283a33479dba3b6?s=96&d=mm&r=g\",\"caption\":\"Tripti Mishra\"},\"description\":\"Hi, I'm Tripti, a senior content writer at Oliveboard, where I manage blog content along with community engagement across platforms like Telegram and WhatsApp. With 3+ years of experience in content and SEO optimization related to banking exams, I have led content for popular exams like SSC, banking, railway, and state exams.\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986716501\",\"position\":1,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986716501\",\"name\":\"Q1. What is an NBFC?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A Non-Banking Financial Company (NBFC) is a financial institution registered under the Companies Act, 2013 that provides loans, investments, and other financial services but does not have a banking license. They are regulated by the RBI under the RBI Act, 1934.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986851435\",\"position\":2,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986851435\",\"name\":\"Q2. How are NBFCs different from banks?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"NBFCs cannot accept demand deposits, are not part of the payment settlement system, and their deposits are not insured under DICGC. However, they provide loans, credit, and financial services similar to banks.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986868597\",\"position\":3,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986868597\",\"name\":\"Q3. What is the minimum capital requirement for NBFC registration?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"An NBFC must have a minimum Net Owned Fund (NOF) of \u20b9200 lakhs and obtain a Certificate of Registration (CoR) from RBI before starting operations.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986882048\",\"position\":4,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986882048\",\"name\":\"Q4. What are the main functions of NBFCs?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"NBFCs provide loans, finance infrastructure and housing, support small businesses, offer investment services, and promote financial inclusion in rural and semi-urban areas.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986897421\",\"position\":5,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986897421\",\"name\":\"Q5. What is the Scale-Based Regulation (SBR) framework for NBFCs?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Introduced in October 2023, the SBR framework classifies NBFCs into four layers\u2014Base Layer, Middle Layer, Upper Layer, and Top Layer\u2014based on size, activity, and risk. This ensures risk-based regulation.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986913484\",\"position\":6,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986913484\",\"name\":\"Q6. What are deposit-taking and non-deposit-taking NBFCs?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"NBFC-D: Deposit-taking NBFCs that can accept public deposits under RBI regulations.<br\/>NBFC-ND: Non-deposit-taking NBFCs that raise funds through borrowings, loans, or debentures.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986938791\",\"position\":7,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986938791\",\"name\":\"Q7. What are the activity-based types of NBFCs?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"NBFCs are categorized into types such as Investment &amp; Credit Companies (ICC), Microfinance Institutions (MFI), Infrastructure Finance Companies (IFC), Housing Finance Companies (HFC), NBFC-Factors, NBFC-P2P, NBFC-AA, and others.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986955506\",\"position\":8,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986955506\",\"name\":\"Q8. Are NBFCs covered under deposit insurance?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No, deposits in NBFCs are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), unlike banks where deposits up to \u20b95 lakhs are insured.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986980879\",\"position\":9,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986980879\",\"name\":\"Q9. Which NBFCs are exempted from RBI registration?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Entities like Venture Capital Funds, Stock Broking companies, Insurance companies (regulated by IRDAI), Nidhi companies, and Chit funds are exempted since they are regulated by other authorities.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986998174\",\"position\":10,\"url\":\"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986998174\",\"name\":\"Q10. Why are NBFCs important for India\u2019s economy?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"NBFCs expand credit access to underserved segments, finance infrastructure, support small borrowers, and complement banks in deepening financial inclusion and economic growth.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"NBFCs Structure, Functions, and Regulations","description":"NBFCs in India: Learn structure, functions, types, and RBI regulations. Key notes for banking, LIC AO, and competitive exam preparation.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/","og_locale":"en_US","og_type":"article","og_title":"NBFC's Structure, Functions, and Regulations","og_description":"Non-Banking Financial Companies (NBFCs) are financial institutions that offer banking-like services such as loans, credit, investments, and asset","og_url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/","og_site_name":"Oliveboard","article_publisher":"https:\/\/www.facebook.com\/Oliveboard","article_published_time":"2025-09-04T18:03:49+00:00","article_modified_time":"2025-09-26T04:19:38+00:00","og_image":[{"width":730,"height":480,"url":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp","type":"image\/webp"}],"author":"Tripti Mishra","twitter_card":"summary_large_image","twitter_creator":"@Oliveboard","twitter_site":"@Oliveboard","twitter_misc":{"Written by":"Tripti Mishra","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#article","isPartOf":{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/"},"author":{"name":"Tripti Mishra","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/d85e63b0781e1a55771b9894184814a5"},"headline":"NBFC&#8217;s Structure, Functions, and Regulations","datePublished":"2025-09-04T18:03:49+00:00","dateModified":"2025-09-26T04:19:38+00:00","mainEntityOfPage":{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/"},"wordCount":1212,"publisher":{"@id":"https:\/\/www.oliveboard.in\/blog\/#organization"},"image":{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp","keywords":["NBFCs"],"articleSection":["Articles","Bank Exams"],"inLanguage":"en-US"},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/","url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/","name":"NBFCs Structure, Functions, and Regulations","isPartOf":{"@id":"https:\/\/www.oliveboard.in\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage"},"image":{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp","datePublished":"2025-09-04T18:03:49+00:00","dateModified":"2025-09-26T04:19:38+00:00","description":"NBFCs in India: Learn structure, functions, types, and RBI regulations. Key notes for banking, LIC AO, and competitive exam preparation.","breadcrumb":{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986716501"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986851435"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986868597"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986882048"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986897421"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986913484"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986938791"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986955506"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986980879"},{"@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986998174"}],"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#primaryimage","url":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp","contentUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/NBFCs-Structure-Functions-and-Regulations.webp","width":730,"height":480,"caption":"NBFCs-Structure-Functions-and-Regulations"},{"@type":"BreadcrumbList","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.oliveboard.in\/blog\/"},{"@type":"ListItem","position":2,"name":"Bank Exams","item":"https:\/\/www.oliveboard.in\/blog\/category\/bank-exams\/"},{"@type":"ListItem","position":3,"name":"NBFC&#8217;s Structure, Functions, and Regulations"}]},{"@type":"WebSite","@id":"https:\/\/www.oliveboard.in\/blog\/#website","url":"https:\/\/www.oliveboard.in\/blog\/","name":"Oliveboard","description":"Free Govt. Exam Alerts &amp; Resources","publisher":{"@id":"https:\/\/www.oliveboard.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.oliveboard.in\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.oliveboard.in\/blog\/#organization","name":"Oliveboard","url":"https:\/\/www.oliveboard.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png","contentUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png","width":150,"height":40,"caption":"Oliveboard"},"image":{"@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Oliveboard","https:\/\/x.com\/Oliveboard","https:\/\/www.instagram.com\/oliveboard.in\/","https:\/\/www.youtube.com\/channel\/UCRvrHAyNdOMI_JBkE2pjZtw?sub_confirmation=1"]},{"@type":"Person","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/d85e63b0781e1a55771b9894184814a5","name":"Tripti Mishra","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/e9ff3153b7365669b619433e04937baec4da53cdb38c345d8283a33479dba3b6?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/e9ff3153b7365669b619433e04937baec4da53cdb38c345d8283a33479dba3b6?s=96&d=mm&r=g","caption":"Tripti Mishra"},"description":"Hi, I'm Tripti, a senior content writer at Oliveboard, where I manage blog content along with community engagement across platforms like Telegram and WhatsApp. With 3+ years of experience in content and SEO optimization related to banking exams, I have led content for popular exams like SSC, banking, railway, and state exams."},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986716501","position":1,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986716501","name":"Q1. What is an NBFC?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A Non-Banking Financial Company (NBFC) is a financial institution registered under the Companies Act, 2013 that provides loans, investments, and other financial services but does not have a banking license. They are regulated by the RBI under the RBI Act, 1934.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986851435","position":2,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986851435","name":"Q2. How are NBFCs different from banks?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"NBFCs cannot accept demand deposits, are not part of the payment settlement system, and their deposits are not insured under DICGC. However, they provide loans, credit, and financial services similar to banks.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986868597","position":3,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986868597","name":"Q3. What is the minimum capital requirement for NBFC registration?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"An NBFC must have a minimum Net Owned Fund (NOF) of \u20b9200 lakhs and obtain a Certificate of Registration (CoR) from RBI before starting operations.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986882048","position":4,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986882048","name":"Q4. What are the main functions of NBFCs?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"NBFCs provide loans, finance infrastructure and housing, support small businesses, offer investment services, and promote financial inclusion in rural and semi-urban areas.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986897421","position":5,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986897421","name":"Q5. What is the Scale-Based Regulation (SBR) framework for NBFCs?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Introduced in October 2023, the SBR framework classifies NBFCs into four layers\u2014Base Layer, Middle Layer, Upper Layer, and Top Layer\u2014based on size, activity, and risk. This ensures risk-based regulation.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986913484","position":6,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986913484","name":"Q6. What are deposit-taking and non-deposit-taking NBFCs?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"NBFC-D: Deposit-taking NBFCs that can accept public deposits under RBI regulations.<br\/>NBFC-ND: Non-deposit-taking NBFCs that raise funds through borrowings, loans, or debentures.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986938791","position":7,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986938791","name":"Q7. What are the activity-based types of NBFCs?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"NBFCs are categorized into types such as Investment &amp; Credit Companies (ICC), Microfinance Institutions (MFI), Infrastructure Finance Companies (IFC), Housing Finance Companies (HFC), NBFC-Factors, NBFC-P2P, NBFC-AA, and others.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986955506","position":8,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986955506","name":"Q8. Are NBFCs covered under deposit insurance?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No, deposits in NBFCs are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), unlike banks where deposits up to \u20b95 lakhs are insured.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986980879","position":9,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986980879","name":"Q9. Which NBFCs are exempted from RBI registration?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Entities like Venture Capital Funds, Stock Broking companies, Insurance companies (regulated by IRDAI), Nidhi companies, and Chit funds are exempted since they are regulated by other authorities.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986998174","position":10,"url":"https:\/\/www.oliveboard.in\/blog\/nbfcs-structure-functions-and-regulations\/#faq-question-1756986998174","name":"Q10. Why are NBFCs important for India\u2019s economy?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"NBFCs expand credit access to underserved segments, finance infrastructure, support small borrowers, and complement banks in deepening financial inclusion and economic growth.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/226936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/users\/60"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/comments?post=226936"}],"version-history":[{"count":1,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/226936\/revisions"}],"predecessor-version":[{"id":226957,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/226936\/revisions\/226957"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media\/229423"}],"wp:attachment":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media?parent=226936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/categories?post=226936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/tags?post=226936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}