The characteristics of NBFC financial services include simpler processes and procedures in sanction and disbursement of credit; timely, friendly and flexible terms of repayment aligned to the unique features of its clientele, albeit at a higher cost. There’s an element of unavoidable overlap of functions, which in no way impinges on the efficiency or effectiveness of the formal financial system in the country.
This shift to electronic payments is most likely to occur through products offered by the banking system. The NPP is a very big step here. If it had not been developed it is likely that non-bank solutions would have gained wide acceptance. This may still happen.