Independent Research and Policy Advocacy

Expanding Access To Bank Credit By Building The NBFC Periphery

he current approach is making NBFCs safer but requiring banks to become riskier, write Nachiket Mor and Dwijaraj Bhattacharya.

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It’s unfair to NBFCs

India is a bank-dominated financial system with about two-thirds of all financial assets in the economy belonging to the banking sector.

NBFCs can now sign up to become Business Correspondents

Removing an earlier restriction that the Reserve Bank had placed on NBFCs, the RBI today has restored the permission for non-deposit taking NBFCs (NBFC-ND) to become Business Correspondents (BCs) to commercial banks, as recommended by the Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households (CCFS).