The financial system in India consists of commercial banks, cooperative banks, regional rural banks and non banking financial institutions. The NBFCs have played an important role in developing the financial system in India. The researchers in this paper made an attempt to understand the progress and role of NBFCs in India. In order to understand this, secondary data is collected from the different sources such as print and e journals along with reports. The study found that there is increased number of NBFCSs in India with increase of deposits and advances.