Open Access Subscription Access
Open Access Subscription Access
Non-Banking Financial Companies in India: Role in Economic Growth, Challenges and the Way Forward
Financial intermediaries like non-banking financial companies (NBFCs) have a definite and very important role in the financial sector, particularly in a developing economy like India. NBFCs play an important role in promoting inclusive growth in the country, by catering to the diverse financial needs of bank excluded customers. Further, NBFCs often take lead role in providing innovative financial services to Micro, Small, and Medium Enterprises (MSMEs) most suitable to their business requirements. The NBFC sector has continuously played a critical role in encouraging growth of the Indian economy and hence needs to be nurtured appropriately. This research paper mainly highlights the role of NBFCs in promoting economic growth of India. It also sets forth various strengths, opportunities, challenges and problems faced by this sector and the way forward.
Financial Sector, NBFCs, Inclusive Growth, Bank Excluded Customers, Innovative Financial Services, MSMEs, Economic Growth.
- Saqib, N. (2013), "Impact of Development and Efficiency of Financial Sector on Economic Growth: Empirical Evidence from Developing Countries", Scientific Papers, p. 1–15.
- Singh, D. (2011), "Growth and Performance of Non-banking Financial Institutes in India", Journal On Banking Financial Services & Insurance Research. p. 94–112.
- RBI (2014), Non Banking Finance Companies: Game Changers. [Online] January 2014. Available from: http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=870. [ Accessed: 2nd July 2014]
- RBI (2012), Interconnectedness of Banks and NBFCs in India: Issues and Policy Implications. [Online] January 2012. Available from: http://www.rbi.org.in/scripts/PublicationsView.aspx?id=13979. [ Accessed: 7th July 2014]
- FICCI (2013), Financial Foresights: Views, Reflection and Erudition. [Online] April 2013. Available from http://www.ficci.com/sector/3/Add_docs/Financial-Foresights- April2013.pdf. [ Accessed: 8th July 2014]
- CRISIL (2011), Retail NBFCs: The shine is back, but will it last?. [Online] March 2011. Available from: http://www.crisil.com/RatingsSite/CRISIL-ratings_nbfccompendium_ mar11.pdf. [ Accessed: 12th August 2014]
- D & B (2009), BFSI Sector In India: Non-Banking Financial Companies. [Online] November 2009. Available from: https://www.dnb.co.in/BFSISectorInIndia/NonBankC2.asp. [ Accessed: 20th September 2014]
- (2013), "High Cost of Getting Bank Licence will be a Challenge for NBFCs: Nirmal Jain, India Infoline", The Economic Times, 2nd July. Available from: http://articles.economictimes.indiatimes.com/2013-07-02/news/40329277. [ Accessed: 26th October 2014]
- Dept. of Financial Services (2012), Report of the Key Advisory Group on the Non-Banking Finance Companies∼(NBFCs).∼[Online]∼January∼2012.∼Available∼from:http: //financial services.gov.in/reports/Reports%20_NBFCs.pdf. [ Accessed: 30th October 2014]
- (2014), Non Banking Financial Company (NBFC) Industry Analysis. [Online] May 27th 2014. Available from:∼http://simconblog.wordpress.com/2014/05/27/non-bankingfinancial- company-nbfc-industry-analysis/. [ Accessed: 30th October 2014]
- Kaur,∼H.∼(2013), "Non Banking Finance Companies: Role & Future Prospects" Global Research Analysis.∼[Online]∼2(8).'Available∼from:∼http:// theglobaljournals.com/ gra/ file.php?val=August_2013_1376745894_5e8c3_44.pdf. [ Accessed: 2nd November 2014]
- Crisil (2014), NBFC Report. [Online]. Available from: http://www.crisil.com/research/nbfc-report.html. [ Accessed: 3rd November 2014]
Abstract Views: 8743
PDF Views: 5