Introduction
As we know, NBFCs are performing an imensive job by providing credit facilities to specific niche sectors, viz., infrastructure and unbanked sections of the economy — thus, driving financial inclusion in India.
And the sector has reported a total annual growth of almost 18% over the previous few years and is expected to maintain…
The Indian FinTech ecosystem demonstrates uniqueness. Its growth is propelled and determined by numerous factors and the involvement of a myriad of stakeholders, including founders, startups, a vast customer base, institutions, and government & regulatory bodies, to name a few.
Fintech is flourishing like never before in India. That's attributable to an ultra-modern digital infrastructure,…
Co-lending, also known as co-origination, is a system in which banks and non-banking financial companies collaborate to provide credit to the priority sector participants. Under this arrangement, banks and NBFCs share risk in an 80:20 ratio (80 % of the loan with the bank and a minimum of 20% with the non-banks).
The Reserve Bank…
Gone were the days when blockchain technology was only associated with cryptocurrency. Now, many industries, like healthcare, insurance, logistics, medicine, entertainment, etc., are trying to harness the advantages of this new and evolving technology, and fintech, as an evolving industry that entirely depends on technology, does not want to lag in any way.
Fintechs are…
Introduction
The Reserve Bank of India often issues master directions and notifications regarding the working of NBFCs. Hence, it helps NBFC adhere to the public interest and safeguards itself when borrowers fail to repay and restore their financial assets in the event of the same.
Thus, it includes the recovery of NPAs, and the Ministry of Finance…
Introduction
Payment or merchant aggregators are third-party service providers allowing payment through several gateways without a merchant account with a bank or card association. PayPal was the first to offer such a service in 1998.
Traditionally this has been quite a manual and muddled process to negotiate with each bank, card provider, and other financial institution. Aggregators…
Trends in NBFCs are changing simultaneously with the technology change. NBFCs have been increasing for the past few years and have reached an all-time high growth.
According to a publication by RBI, their credit intensity measured by the credit/GDP ratio has increased from 8.6 in 2013 to 13.7 in 2021.
Moreover, compared to Scheduled Commercial…
Introduction
After the pandemic has derailed the growth in many sectors, NBFCs are still lucrative and surging with their accessible and affordable financial services.
The proactive RBI amendments also have played a significant role in harmonising NBFCs with the rules of the banking sector— making it seamless and safeguarding the customer’s interest.
Recent Developments by…
Before talking about NBFC, Do you remember the economic crisis of 2009? If you do not know, then know that businesses worldwide were stuck due to a lack of finance in this financial crisis. And even the banks that financed these businessmen had to struggle to save themselves.
We know that banks cannot go to…