What do you mean by Non-Banking Financial company ? Enumerate the powers of Reserve Bank of India vested in the Reserve Bank of India Act for regulating and supervising the Non-Banking Financial companies.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. The Reserve Bank of India is entrusted with the responsibility of regulating and supervising the Non-Banking Financial Companies (NBFC's) by virtue of powers vested in Chapter III B of the Reserve Bank of India Act, 1934. The regulatory and supervisory power of Reserve Bank of India are as under: Ensure healthy growth of NBFC's Issue certificate of registration and prescribe net owned fund for NBFC's Regulate or prohibit issue of prospectus or advertisements soliciting deposits of money by NBFC's Determine policy for NBFC's Call for information and issue directions to NBFC's Prevent the affairs of any NBFC being conducted in a manner detrimental to the interest of the depositors or in a manner prejudicial to the interest of the NBFC.