Non-Banking Financial Companies (NBFCs) have become key players in India's financial scene, providing a wide range of services that complement traditional banks. Regulated by the Reserve Bank of India (RBI), these companies focus on lending and investment activities without accepting demand deposits. Over time, NBFCs have become major contributors to the financial sector. Pavitra Pradip Walvekar, the Pune-based promoter-director of Kudos Finance and Investments Private Limited, shares his expectations for the upcoming Union Budget regarding NBFCs. Let's explore what he has to say.
The NBFC sector in India has seen impressive growth, with an expected Compound Annual Growth Rate (CAGR) of 18.5% from 2021 to 2026. This rapid growth is evident in the increasing annual turnover of the sector, driven by significant contributions from areas like housing finance, microfinance, and consumer finance.