The Regional Rural Banks (RRBs) were created under the RRBs Act, 1976 and are regulated by the RBI but supervised by the NABARD, while the non-banking financial companies are subject to the provisions of the Companies Act, 1956 and are regulated and supervised by the RBI under the provisions of the RBI Act.
The housing finance companies, which are a sub-set of the NBFC category, are currently regulated and supervised by the National Housing Bank while the rural co-operative credit structure falls within the regulatory and supervisory domain of the NABARD. History of consolidation in the Indian banking sector 5.