Growth and Development of non-banking financial companies in Tamil Nadu
Dr. L. SATHEESKUMAR
NBFCs are emerging as an alternative to mainstream banking. Besides, they are emerging as an integral part of Indian financial system and have commendable contributions towards government’s agenda of financial inclusion. They have been providing credit to retail customers in the underserved and unbanked areas. Their ability to innovate products in consonance to the needs of their clients is well established. They have played a key role in the development of important sectors like road transport and infrastructure which are the life lines of our economy. It is accepted by everyone that NBFCs have been playing an important role in channelizing the scarce financial resources in capital formation. NBFCs have been supplementing the role of the organised banking sector by bridging the credit gaps i.e. in meeting the increasing financial needs of the corporate sector, delivering credit to the unorganized sector and to small local borrowers. NBFCs have enjoyed a more flexible structure than banks in the organised sector. From time to time, the Governmentof India as well as Reserve Bank of India have been working towards regulation of NBFCs. The present paper focuses on areas like concept of NBFCs, evolution, growth and development of NBFCs, regulatory authorities and supervision of NBFCs.