A Study of NBFC'S Impact on the Development of the Indian Economy
Author : Dr. Sagar Sanwariya and Nemichand Meena
Abstract :
By boosting transportation, employment creation, wealth creation, bank credit in rural sectors, and assistance for economically underprivileged groups of the community, NBFCs do play a crucial position in the growth of an economy. Although the banking industry has a significant impact on the Indian financial market, non-banking financial companies are increasingly competing with the banking industry by offering a variety of financial services and complementing other financial organisations in the Indian economy. The purpose of this study is to understand how NBFCs have influenced the growth of the Indian economy. It is highly challenging for emerging nations like India to secure financing for economic growth and entrepreneurship. Although the government has implemented numerous financial inclusion programmes, including the Pradhan Mantri Jan Dhan Yojana and many others, banks are unable to meet the needs of all classes of people because of their strict credit worthiness and loan disbursement policies. As a result, households and small business owners are unable to access banks' financial services. Therefore, NBFCs must be able to offer a variety of financial services to all societal sectors promptly and efficiently in order for entrepreneurship to flourish in our nation. NBFCs play a crucial role in the mobilisation of funds in our economy by meeting the debt requirements of diverse economic sectors, such as major infrastructure financing and small microfinance. For the aforementioned points of view, study has been done to understand the role of NBFCs in the growth of the economy in our nation and to understand its current issues.
Keywords :
NBFC, economic development
