look news india
India's non-banking financial company (NBFC) sector has now become the third largest in the world. Only two countries are ahead of India – the US and the UK. This information has been given in a report by SBI, which shows the growing strength of the country's financial sector. According to IANS news, non-banking financial institutions do not have a full banking license and hence they cannot accept public deposits. These institutions focus on providing loans to consumers and businesses, which play an important role in accelerating economic growth.
Indian banking sector is improving
The report said that over the past decade, the Indian banking system has shown remarkable resilience in overcoming multiple challenges posed by the domestic and international economic environment. It added that improved asset quality and strong macroeconomic fundamentals have played a key role in improving the Indian banking sector. It highlights that the Indian government and regulatory bodies are focused on creating a level playing field for financial institutions.
These efforts are showing results
These include initiatives such as building stronger banks through mergers and capital infusions, improving governance practices, expanding the reach and quality of financial services, and adopting digital banking. During the pandemic, the government maintained financial sector stability through adequate capital and liquidity buffers. This resilience is attributed to the proactive measures taken by the Reserve Bank of India (RBI). The report also said that RBI's efforts to strengthen the financial system include implementing regulatory measures that ensure the sector is well protected from economic shocks.
There is also a significant progress in digital banking
These measures have not only helped maintain stability but also promoted growth and innovation in the sector. India's digital banking landscape has also seen significant progress recently. The move towards digital banking has been a major contributor to the growth of the sector. This shift to digital platforms has expanded access to financial services, making them more inclusive and efficient. The report also highlights that the government and regulatory bodies have prioritised consumer protection, ensuring that people's interests are safeguarded amid the digital transformation.