RBI RESEARCH ARM LAUDS INNOVATIVE FINANCING, TOOLS, NOVEL DELIVERY MECHANISMS BY NBFCS

As India shrugs off the drag of the pandemic and positions itself on a higher growth trajectory, a research wing of the Reserve Bank of India has suggested a thorough stock-taking of the non-banking financial companies (NBFCs) in India and to catalyse it for a bigger and more versatile role in financial intermediation.

- NIVEDITA MUKHERJEE

The India Finance Report, the first flagship publication of the Centre for Advanced Financial Research and Learning (CAFRAL) -- set up in 2011 as an independent body by the RBI, promotes research and learning in the field of finance, macroeconomics and public policy against the backdrop of India’s evolving role in the global economy -- was released by Governor, Reserve Bank of India (RBI) Shaktikanta Das, Tuesday.

The IFR theme, “connecting the last mile”, owes its choice to the past decade-long rapid growth in NBFC financial intermediation, which has seen NBFCs emerging as agents for formalizing finance in India by facilitating financial inclusion through innovative financial products and novel delivery mechanisms. The CAFRAL report provides fresh insights into the NBFC sector in India that can aid all stakeholders, including regulators and policymakers, in securing a greater understanding of the sector and a wider appreciation of its niche strengths and opportunities.