Who controls non-banking financial companies?

As per RBI Act 1934, Reserve Bank of India (RBI) has the powers to regulate and control the Non-Banking Financial Companies. As per RBI Act, RBI can exercise surveillance, supervise, inspect, issue directions, lay down policies and regulate the Non-Banking Financial Companies (NBFC’s). You can read about the Types of Non Banking Financial Institutions – Functions & Objectives in the given link.

If NBFC’s violate the directions or provision of the RBI, then the RBI has the power to penalize the NBFC’s. 

Further readings:

1. NBFCs & IBC: RSTV – Big Picture Discussion on the RBI’s move to resolve NBFCs under insolvency law
2. Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III]