Non-Banking Finance Companies (NBFC) sector has been recognised as an important part of the financial system. It has played a seminal role in the past and more so during the pandemic when majority of the MSME, Retail and Farm sector were under distress due to lockdowns imposed in majority of the Geographic locations. In this hour of need, NBFC sector has played a key role in ensuring smooth and continuous flow of credit, particularly to MSME, farm sector and retail sector and ensure that they are able to earn their livelihood, provide employment, make timely payment of salary and wages and do not go through financial distress making it one of the most important sectors within the Financial Services domain.
While the Banks have taken the responsibility as an effective and efficient conduit to channelize the Government schemes and packages to propel the necessary liquidity and sustenance capital, Indian NBFCs have also played an undeniable role in furthering the liquidity availability for survival and revival of the stressed sectors of the economy. As the Indian economy springs back from the ‘pandemic hit’ dip in GDP, the NBFC sector continues to play the pivotal role of protecting the financial health of the Industry.
Therefore, to celebrate the resilient role played by the NBFC sector in continuity and sustainability of economic activity through the pandemic phase and to define the path for contributing to the Government’s aspiration of ‘AatmaNirbhar Bharat’, CII organised a Virtual NBFC Summit.
This is the proceedings of the session on 'Role of NBFCs in Achieving $5 Trillion Economy', held on 22 October 2021 as part of NBFC Summit 2021. This session focussed on the Emergence of NBFCs as alternative mainstream credit disbursal, its role in growth of GDP and how it has played a key role in reaching out to the last mile.
Duration of the video is 57 minutes 35 seconds.