Literature Review On Nbcs

REVIEW OF LITERATURE

Sharma and Goel (2012) in their paper entitled “Functioning and Reforms in Non-Banking Financial Companies in India”. The Non-banking financial companies will provide all types of services related to banking system in India other than deposit facilities. They provide loans and advances, credit facilities, money market, mergers and acquisitions advices, retirement planning and underwriting facilities. The NBFCs in India plays a vital role in providing credit to different categories like small borrowers etc… The fast growth in NBFCs has led to made a dividing line between banks and NBFCs, but the commercial banks has the power to issue the cheques and accepting deposits which can’t be done by the NBFCs. In this paper they

The three factors provide an effective and efficient payment and borrowing system which helps the Indian society to change from savers to the investors which leads to show a growth in countries economy. The Non-banking financial sectors shows a notable growth in the economy by two decades, in that periods the providing a sets of successful services which leads to the growth. The economy needed both investors and savers where the Indian society has only less number of investors before the successful decades. Recently NBFCS developed to providing services similar to banks by the latest reforms by Reserve bank of India, There are several factors which lead in the growth of NBFCs in India. They provide loans and advances services to clients, helping in investing activities of customers by advices and act as hire purchaser to its customers. The main problems faced in the growth of NBFCs are the comprehensive regulation in the banking sector and comparatively less regulations in the working of Non-banking financial companies. The growth criteria of both, that is commercial banks and NBFCs are positively related by the regulations made by Reserve bank of India. – The Indian Economic Journal, Volume 49,

Financial system in India is consists of mainly three factors, that are financial markets, financial institutions and financial instruments. These factors facilitate and provide effective and efficient channels for credit of funds to stabilize the economy of India. The Non-banking financial institutions having a major role in providing various needs of the customers to facilitate credit facilities, they provide the services like investment advisory, leasing, asset management etc. because of Non-banking institutions are involved in providing various services similar to bank they shows a considerable growth in India in the recent years. The aim of the paper is to analyse the growth and financial performance of Non- banking financial companies in India based on last five years activities. The study will help the investors to know more about the potential and performance of NBFCs and to take decisions on investments in Non-banking financial sector. - Indian Journal of Applied Research, Vol. 2, No. 2, November 2012, pp.