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Non banking financial institution is a company which is having the business of receiving deposits under any scheme of arrangement or in any other manner. Such institution raise funds from the public whether directly or indirectly and supply these funds to the ultimate consumers .Non banking Financial Institution plays a very significant role in meeting out the needs of all the sectors of the economy. Non banking financial institutions broadened the range of services offered by the financial sector.

As lots of transactions are carried out by these non banking financial institution So it is dire need that there should be proper regulation and management of these institutions. Reserve Bank of India is one of the important agency to regulate the working of these non banking financial institutions so that the interest of needed persons will not suffer. Acc to the RBI it is mandatory for the Non banking financial institution to get a registration before its operation.