NBFC stands for “Non- Banking Financial Company”. It provides similar services to banking like lending money, but the company doesn’t require to meet any legal stipulation of the bank. An NBFC company is incorporated under the Companies Act, 2013, thus every NBFC must get a commencement of business certificate from the Reserve Bank of India. It is defined under section 45 1(a) for the RBI Act.
An NBFC can’t carry out its business without obtaining the registration certificate which is issued by the Reserve Bank of India. The process of NBFC registration or NBFC license takes about 90 to 120 days.