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Non-Banking Financial Companies in India: Role in Economic Growth, Challenges and the Way Forward


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1 S.R. Luthra Institute of Management, Surat, India
     

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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.

Keywords

Financial Sector, NBFCs, Inclusive Growth, Bank Excluded Customers, Innovative Financial Services, MSMEs, Economic Growth.
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  • Non-Banking Financial Companies in India: Role in Economic Growth, Challenges and the Way Forward

Abstract Views: 8077  |  PDF Views: 5

Authors

Esha Pandya
S.R. Luthra Institute of Management, Surat, India

Abstract


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.

Keywords


Financial Sector, NBFCs, Inclusive Growth, Bank Excluded Customers, Innovative Financial Services, MSMEs, Economic Growth.

References





DOI: https://doi.org/10.15410/aijm%2F2015%2Fv4i1%2F59908