(1) The working and operationsof NBFCs are regulated by theReserve Bank of India (RBI)within the framework of theReserve Bank of India Act,1934 (Chapter III-B) and thedirections issued by it.A Non-Banking Financial Company(NBFC) is a company registeredunder the Companies Act,1956 of India, engaged in thebusiness of loans and advances,acquisition of shares, stock,bonds hire-purchase, insurancebusiness or chit business.