A 'Non-Banking Financial Company-Investment and Credit

Solution

The RBI classifies NBFCs based on their principal activity. An NBFC-Investment and Credit Company (NBFC-ICC) is a core category that encompasses companies whose principal business is: 1. Providing loans and advances. 2. Acquisition of securities (shares, bonds, debentures, etc.). 3. Financial leasing or hire-purchase. 4. Asset financing. Essentially, it's a broad category for NBFCs engaged in mainstream lending and investing, excluding those with specialized focuses like housing (HFCs), infrastructure (IDF), or microfinance.