In that case, they would convert NBFCs into new banks or transfer the lending activities of the Group NBFC into the new bank, as per the requirement. Implications for the economy 37. Finance is fuel for the economy. Banks being at the core of the financial system, provide this fuel.
Persistent losses in cost and price competitiveness – if those are not offset by corresponding improvements in non-price competitiveness – are sooner or later paid in terms of output losses, rising unemployment and increasing current account deficits.