Though banking Sectors are affecting Indian Financial Market a lot,  but now The Non Banking Financial Companies are playing a very vital role in Indian Financial markets and also competing with Banking Sectors by providing various Financial services and are playing a complementary role with other Financial institutions in Indian Economy. Here the Study has been made to know the role of NBFCs in Development of Indian Economy. In developing Country like India, For the access of finance in the economic development and For growth of Entrepreneurship is very difficult .now a days though various financial inclusion schemes like Pradhan Mantri Jan Dhan Yojana and many more have been implemented by the government through the help of Banking sectors, but banks cannot meet all the financial needs of all class peoples due to their rigid loan disbursement policies and credit worthiness policies, because households and small business man cannot access the financial services from banks due to the above reasons .So the needs of NBFCs for providing various financial services to the all segments people easily and more quickly for the development of Entrepreneurial activities in our Country. NBFCs are addressing the debt requirement of various sectors in the Economy like from large infrastructure financing to small micro finance, so playing a very vital role in fund mobilisation in our Economy. This Industry has responded positively to the regulatory efforts for the better understanding of risks and to identify such risks through the assistance of regulations in its Credit scenario. Over the time the Sector has been fragmented and accepts best management practices innovation, risk management, technology and governance. For above those points of view the research has been conducted to know the role of NBFCs in the development of Economy in our country and to know its present challenges.

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Keywords: Non-banking Finance Companies, Lease and Hire Purchase, Assets Growth.