The Non-Banking Financial Companies ("NBFCs") have been playing a very important role from the macroeconomic perspective by delivering the capital support to the last mile and to the smaller businesses. Following the defaults by Infrastructure Leasing and Financial Services and Dewan Housing and Finance Limited, and with the surface of asset-liability mismatch in the NBFCs sector, it became inherently difficult for any shadow banks including NBFCs to raise funds from the market, which in turn questions their survival in the financial sector. This mandated the largely unregulated NBFCs sector in need of a stringent framework to prevent any future liquidity crisis.
BF-Consolidation-in-NBFC-sector-JUN-2019
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