The regulatory interventions are graded: higher in deposit-taking NBFCs and lower in non-deposit-taking NBFCs. Thus, excessive leverage in this sector has been contained. Various segments of the domestic financial market have been developed over a period of time to facilitate efficient channelling of resources form savers to investors and enable the continuation of domestic growth momentum (Mohan, 2007a).
Investment has been predominantly financed domestically in India – the current account deficit has averaged between one and two per cent of GDP since the early 1990s.