The  BIS central bankers’ speeches  7  number of NBFCs grew more than seven-fold from 7,063 in 1981 to 51,929 in 1996.
Accordingly, based on the recommendations of the Shah Committee, the RBI Act was amended in January 1997 to provide a comprehensive legislative framework for regulation of NBFCs by effecting changes in the provisions contained in Chapter III-B and Chapter V of the Act and vested more powers with the RBI.