It is a company classified as an NBFC (a Non-banking financing company) and registered under Section 406 of the Companies Act 2013. The main business of such a company is to facilitate lending money between the core members of the company. This way, members (or shareholders) are encouraged to save money and invest them within the company. The company then uses these deposits for its members (or shareholders) to provide loans or advances and to acquire government-issued stocks/bonds/debentures/securities. The Ministry of Corporate Affairs regulates it, while the RBI monitors all its financial dealings.