A Study on the Growth and Development of Non Banking Financial Institutions in India

The financial sector in India consists of several intermediaries. It includes banking entities, investment intermediaries, insurance companies, information and analysis providers, investment banks, portfolio managers etc. All the entities that offer financial services other than banking may be called as non banking financial institutions. Non banking financial companies have been playing an important role in channelizing the scarce financial resources in capital formation. Non banking financial institutions are an important alternative channel of finance for the commercial sector in India’s bank dominated financial sector. They are emerging as an integral part of Indian Financial System and have tremendous contributions towards financial inclusion. Their role in promoting financial inclusion and catering to the needs of small businesses is significant. The objective of the present study is to highlight the growth and development of Non banking financial institutions in India. The study is both analytical and descriptive in nature and is based on secondary data. The research paper concludes that there is tremendous growth in this sector and it contributes significantly towards the economic development of the country.