<h1>RBI Regulates NBFCs to Ensure Growth and Stability in Financial System; Sets Guidelines on Registration and Deposits.</h1> The Reserve Bank of India (RBI) oversees the regulation and supervision of Non-Banking Financial Companies (NBFCs) to ensure their healthy growth and integration into the financial system without causing systemic issues. NBFCs, unlike banks, cannot accept demand deposits, are not part of the payment system, and do not offer deposit insurance. They must register with the RBI unless regulated by other authorities. NBFCs are categorized based on their liabilities and activities, including Asset Finance Companies, Investment Companies, and Micro Finance Institutions. The RBI provides guidelines on registration, deposit acceptance, and prudential norms to safeguard depositor interests.