Transcription of Non-Banking Financial Institutions
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I. Non-Banking Financial Institutions (NBFIs) have been intermediating a growing share of the resource flows to the commercial sector. NBFIs regulated by the Reserve Bank are all-India Financial Institutions (AIFIs), Non-Banking Financial companies (NBFCs) and primary dealers (PDs) (Chart ). AIFIs, largely an outcome of development planning in India, were created as apex public entities for providing long-term financing / refinancing to specific sectors. NBFCs, on the other hand, are mostly private sector Institutions that specialise in meeting the credit needs and a variety of Financial services of niche areas which, inter alia, include financing of physical assets, commercial vehicles and infrastructure loans.
the primary and secondary markets for government securities. In terms of balance sheet size, AIFIs constitute 23 per cent of NBFIs’ total assets, while NBFCs represent 76 per cent and standalone PDs constitute 1 per cent. Non-banking financial institutions (NBFIs) are an important alternative channel of finance for
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