Number of NBFCs in India 2021, by category

As of financial year 2022, 9500 NBFCs belonged to the non-deposit taking category (NBFC-NDs), based on liabilities. Systemically important non-deposit taking NBFCs (NBFC-ND-SI) are large NBFC-NDs with assets of more than five billion Indian rupees. There was a total of 9680 NBFCs registered with the Reserve Bank of India.

What are NBFCs?

NBFCs are non-banking financial companies that provide banking services without holding a banking license. They engage in the advancement of loans and advances, acquisition of shares, stocks, bonds, savings and investment products, credit facilities and so on. NBFCs do not form part of the payment and settlement system. Investment companies, infrastructure finance, loan companies, asset finance companies are common examples of NBFCs based on activity.

Relevance of NBFCs in Indian landscape

NBFCs facilitate credit to key and niche sectors of the Indian economy ranging from infrastructure to unbanked sections of the society. They play an integral role in the diversification of the Indian financial sector by mobilizing resources and providing loans at payable costs. The sector also brings new credit disbursals into micro, small, and medium enterprises (MSMEs) and contributes largely to the economy by lending to infrastructure projects.