The dynamic nature, endless compliances, and stiff competition make it hard for most NBFCs to operate seamlessly for long. Since these firms experience myriad and delicate transactions, they are bound to abide by RBI's stringent norms to stay transparent, legitimate, and accountable. The prudential norms regulate NBFCs for stability, solvency, and financial soundness. The norms are primarily formulated to protect NBFCs from financial haywire and insolvency. On that note, let's discuss Prudential Norms for NBFC Non-Deposit Taking in detail.