Tag: NBFC

Non-Banking Finance Companies (NBFCs) play a critical role in the credit ecosystem by acting as last-mile financiers for the unbanked and underserved segments of the Indian economy,

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

Read more at: https://www.ndtvprofit.com/bq-blue-exclusive/expanding-access-to-bank-credit-by-building-the-nbfc-periphery
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The Indian government has set into motion the implementation of several schemes that are aimed at improving both the liability and asset sides of the balance sheets of banks and non-banking financial companies (NBFCs), so that lending to the real economy can increase. The most recently introduced are four schemes.

Response to the rescue package announced by Finance Minister on May 13th, 2020

The Reserve Bank of India (RBI) has permitted banks and non-banking finance companies (NBFCs) to reschedule payments on all loans for the period between March and May 2020 to stem the impact of the covid-9 pandemic.

Cash withdrawals through micro ATMs have surged in the wake of covid-related disruptions in the operations of banks and business correspondents.
But a considerable number of these transactions fail, thus worsening the pain of the vulnerable sections.

This blog examines the growth in household holdings of financial assets and liabilities for the period 2000-01 to 2016-17

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

Several studies have found that the Indian banking sector, while having a large number of players, has monopolistic competition.

NBFCs are particularly vulnerable to wholesale funding constraints in the form of high and volatile borrowing costs