Q.6)What is the importance of the NBFC sector in India's financial market? How can the issues related to it be resolved?
Why this question:
NBFC forms an important part of the current affairs as well as GS Paper III.
Key demand of the question:
Mention the importance of the NBFC sector and the recent crisis that it is going through.
Give a brief introduction of the NBFC sector.
In the first part mention the importance of the NBFC sector in India w.r.t. inclusive growth, employment, micro finance, asset finance, infrastructure finance, etc. giving examples.
In the next part, mention the issues with the NBFC sector. Relate it to the recent crisis in the sector.
Also, mention the measures adopted by the Government and the RBI to boost up the sector.
Conclude by giving a way forward.