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A Review of Role and Challenges of Non-Banking Financial Companies in Economic Development of India

Author

Listed:
  • Afroze Nazneen

    (College of Business, University of Jeddah, Jeddah, Saudi Arabia,)

  • Sanjeev Dhawan

    (Department of Economics, DAV College, Jalandhar, India)

Abstract

For a large and diverse country like India, ensuring financial access to penetrate growth and entrepreneurship is a critical priority. In this scenario, the Non-Banking Finance Companies (NBFCs) sector has scripted a story that is remarkable. It speaks to the truly diverse and entrepreneurial spirit of India. From large infrastructure financing to small microfinance, the sector has innovated over time and found ways to address the debt requirements of every segment of the economy. To its credit, the industry has also responded positively to regulatory efforts to better understand risks and to address such risks through regulations. Over time, the sector has evolved from being fragmented and informally governed to being well regulated and in many instances, adopted best practices in technology, innovation and risk management as well as governance. In the light of this, the present study encompasses the role and challenges faced by NBFCs in Economic Development of India.

Suggested Citation

  • Afroze Nazneen & Sanjeev Dhawan, 2018. "A Review of Role and Challenges of Non-Banking Financial Companies in Economic Development of India," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 90-98.
    • Handle: RePEc:eco:journ1:2018-06-13
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    References listed on IDEAS

    as
    1. Fase, M. M. G. & Abma, R. C. N., 2003. "Financial environment and economic growth in selected Asian countries," Journal of Asian Economics, Elsevier, vol. 14(1), pages 11-21, February.
    2. Monzur Hossain & Md. Shahiduzzaman, 2004. "Development of Non Bank Financial Institutions to Strengthen the Financial System of Bangladesh," Finance 0409006, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Monika Gupta & Shubhi Bansal, 2020. "Covid-19 Disruption of Middle-Class Monthly Household Income and Budget," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 10-17.

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    More about this item

    Keywords

    NBFCs; Banks; Financial Institutions; Lease and Hire; Purchase and Assets Growth;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services

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