NBFCs As A Catalyst for Financial Inclusion

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.