A robust banking and financial sector is critical for activating the economy and facilitating hire economic growth. Financial  intermediaries like  non-banking  financial  companies  NBFCs  have a definite and a very important role in the  financial sector,  particularly in  a  developing economy like  india.  They are a vital link in the system. After the proliferation phase of 1980’s and early 1990’s, the NBFIs witnessed consolidation and now the number of NBFCs  eligible to  accept deposits in  around  600,  down  from 40,000 in early 1990’s. The number of asset financing NBFs would be even lower, around 350, the rest are investment and loan companies. Almost 90% of assets financing NBFCs are engaged in financial transportation equipments and the balance are in financing equipments for infrastructure projects. Therefore,  the role of non-banking sector  in  both  manufacturing and  service  sector  is  significant and  they play  the  role of an intermediary by facilitating the flow of credit to end customers particularly in transportation and other unorganized sectors.

KEYWORDS:  Financial Intermediaries, Economic Growth, Financial Services, Lease Finance.