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Banks see loan rivals in Street, non-banks
Hindustan Times Mumbai
|December 30, 2025
The Reserve Bank of India (RBI) said on Monday that banks will continue to face competition from non-bank sources in lending to companies, while fast-changing technology could change how customers transact and pose cybersecurity risks.
RBI said that despite slower bank credit in FY25, total financial flows to the commercial sector rose on non-bank funding.
(REUTERS)
In its report on trends and progress in India’s banking, RBI said that despite a moderation in bank credit in fiscal year 2025 (FY25), the total flow of financial resources to the commercial sector increased, thanks to non-bank resources.
RBI defines the flow of financial resources to the commercial sector as the aggregate of bank loans, loans from non-banks, and investment by Life Insurance Corp. in corporate debt, besides funds raised overseas.
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