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NBFCs As A Catalyst for Financial Inclusion


Affiliations
1 Department of Humanities, PSG College of Technology, Coimbatore, India
     

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The Non Banking Financial Companies (NBFC) have emerged as widely accepted financial service providers with their extensive network in rural and semi-urban centres catering to the financial needs at the grass-ischolar_main level. This paper aims to examine the growth of “reporting companies” and “deposits accepted” of NBFCs for the period 1997-98 to 2017-18, and comparatively analyse the credit disbursement by the NBFCs vis-à-vis Scheduled Commercial Banks (SCBs) across various sectors for the period 2015-16 to 2018-19. The findings reveal that the “number of reporting companies” under NBFC declined by 10% while the “deposits accepted” grew at 4%. The analysis indicates that the offtake of NBFCs’ credit grew relatively at a higher rate than that of SCBs.

Keywords

NBFCs, Scheduled Commercial Banks, Financial Inclusion, Credit Provision.
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  • NBFCs As A Catalyst for Financial Inclusion

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Authors

K. P. Radhika
Department of Humanities, PSG College of Technology, Coimbatore, India
D. Bhuvaneshwari
Department of Humanities, PSG College of Technology, Coimbatore, India

Abstract


The Non Banking Financial Companies (NBFC) have emerged as widely accepted financial service providers with their extensive network in rural and semi-urban centres catering to the financial needs at the grass-ischolar_main level. This paper aims to examine the growth of “reporting companies” and “deposits accepted” of NBFCs for the period 1997-98 to 2017-18, and comparatively analyse the credit disbursement by the NBFCs vis-à-vis Scheduled Commercial Banks (SCBs) across various sectors for the period 2015-16 to 2018-19. The findings reveal that the “number of reporting companies” under NBFC declined by 10% while the “deposits accepted” grew at 4%. The analysis indicates that the offtake of NBFCs’ credit grew relatively at a higher rate than that of SCBs.

Keywords


NBFCs, Scheduled Commercial Banks, Financial Inclusion, Credit Provision.

References