Non-banking financial companies, or NBFCs, are heavily involved in economic activities such as secured and unsecured loans, marketplace lending, investments, or information service providers, among other things, as defined by Section 45-IA of the RBI Act, 1934, and the Companies Act, 2013. NBFCs are distinct from commercial and cooperative banks in that they do not require a banking license but must adhere to the Reserve Bank of India's (RBI) Rules and Regulations.