Micro, small, and medium enterprises (MSMEs) are a vital component of India's economy, contributing significantly to the GDP and fostering employment. However, the sector needs to grapple with financing challenges, including a lack of credit history, low awareness of government schemes, and high-interest rates. Non-banking financial companies (NBFCs) have emerged as a crucial source of financial support for MSMEs, offering regulatory compliance and reliability. The Reserve Bank of India (RBI) plays a pivotal role in regulating and overseeing these NBFCs, ensuring their adherence to stringent norms encompassing risk and liquidity management, corporate governance, and capital adequacy. RBI-registered NBFCs offer tailored financial solutions for MSMEs, fostering growth and development. Regulatory oversight ensures stability, transparency, accountability, and risk management. Trust and compliance make NBFCs a preferred choice for reliable financial partnerships.