Over a period of time, especially during late 80s and early 90s, NBFCs penetrated into the main stream of financial sector and established themselves as complements of banking industry. In light of this, an Ordinance was promulgated by the Government in January 1997, effecting comprehensive changes in the provisions of RBI Act.
Over the period the regulation for the NBFCs has been modified and made in conformity with the banks. Thus, because of history of regulatory best practices, shadow banking has not posed any problem for the financial sector in India. Sector Specific Refinance Facilities 17.