FUTURE OF NBFC’S
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NBFC INDIA NBFCs have come to be regarded as important financial intermediaries particularly for the small-scale and retail sectors with the growing importance assigned to financial inclusion.
NBFC INDIA • In the multi-tier financial system of India, importance of NBFCs in the Indian financial system is much discussed by various committees appointed by RBI in the past and RBI has been modifying its regulatory and supervising policies from time to time to keep pace with the changes in the system.
NBFC INDIA • NBFCs are an integral part of the Indian financial system, enhancing competition and diversification in the financial sector, spreading risks specifically at times of financial distress and have been increasingly recognized as complementary of banking system at competitive prices.
NBFC INDIA • The Banking sector has always been highly regulated, however simplified sanction procedures, flexibility and timeliness in meeting the credit needs and low cost operations resulted in the NBFCs getting an edge over banks in providing funding.
CLASSIFICATION • The NBFCs that are registered with RBI are basically divided into four categories depending upon its nature of business: 1.hire-purchase company 2.• equipment leasing company
CLASSIFICATION 3. loan company. 4. investment company. 5. infrastructure finance company.
FUTURE • NBFCs have been playing a very important role both from the macro economic perspective and the structure of the Indian financial system. • NBFCs are the perfect or even better alternatives to the conventional Banks for meeting various financial requirements of a business enterprise.
FUTURE • They offer quick and efficient services without making one to go through the complex rigmarole of conventional banking formalities. • However to survive and to constantly grow, NBFCs have to focus on their core strengths while improving on weaknesses.
FUTURE • They will have to be very dynamic and constantly endeavor to search for new products and services in order to survive in this ever competitive financial market.
FUTURE RBI has been reviewing the existing NBFC guidelines and has proposed certain changes in the guidelines which could prove to have a significant impact on the NBFC space