A Non-Banking Financial Company (NBFC) is a financial institution that provides various financial services but does not hold a banking license. NBFCs offer services such as loans, asset financing, and investment opportunities, catering to individuals and businesses. They play a crucial role in the financial system by providing credit and promoting financial inclusion. Unlike traditional banks, NBFCs cannot accept demand deposits, meaning they cannot offer checking accounts. They are regulated by the Reserve Bank of India (RBI) in India and must adhere to specific guidelines to ensure consumer protection and financial stability.