Leading Non-Banking Financial Companies (NBFCs) have requested the Reserve Bank of India (RBI) to permit them to raise retail deposits, aiming for a level playing field with banks and better policy rate transmission. Currently, only a few NBFCs with legacy licenses can accept such deposits. A key concern for the RBI is the lack of deposit insurance for NBFCs, unlike banks, which are covered by DICGC up to Rs 5 lakh. NBFCs that can accept deposits face strict limits on amounts and interest rates.