ENTREPRENEURSHIP

Detailed explanation-1: -Answer. The agency responsible for regulating and supervising the Non-Banking Financial Companies is the Department of Non-Banking Supervision (DNBS).

Detailed explanation-2: -The Department of Non-Banking Supervision (DNBS) of RBI is entrusted with the responsibility of regulation and supervision of NBFCs under the regulatory-provisions contained under Chapter III B and C and Chapter V of the Reserve Bank of India Act, 1934.

Detailed explanation-3: -The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III-B) and the directions issued by it.

Detailed explanation-4: -A Non–Banking Financial Corporation is a company incorporated under the Companies Act 2013 or 1956. According to section 45-I (c) of the RBI Act, a Non–Banking Company carrying on the business of a financial institution will be an NBFC.

Detailed explanation-5: -The correct answer is the Reserve Bank of India. With the enactment of the RBI (Amendment) Act, 1977, the RBI (Reserve Bank of India) controls the functioning of NBFCs. NBFCs as a whole account for 11.2% of assets of the total financial system.