First, the size of some of the non-bank financial institutions and the overall magnitude of the activities of the “non-bank, non regulated sector” have become significant and can pose systemic risks.
There are also several amendments to the RBI Act, 1934, that need to be taken up with the Government in right earnest. 34. Another issue that need to be tackled is resource raising by NBFCs. Today debentures and bank finance are the two main sources of funds for reporting NBFCs.