Non-Banking Financial Institutions (NBFI) v/s Banks in India – Why NBFI are doing much business than Banks? A study of Kolkata based Upper and Middle Class Consumers. INTRODUCTION
In the era of globalization and liberalization the development of financial sector has played and important role in the economy of India. With the services offered by banks and non-banking financial institutions (NBFI) the life of consumer in India has completely changed. Borrowing is one of the important aspects that have changed the whole scenario of Indian society.
Change in the trend of culture of upper & middle class consumers, change in the behaviour of consumer regarding borrowing and change in the norms of banks and NBFI regarding borrowing has made life of Indian consumer very comfortable.
This research shows how non-banking financial institutions are fulfilling the demand of upper & middle class consumers and how they are doing more business than banks and why consumers rely more on NBFI rather than banks in India.
This research uses questionnaires, interviews of consumers and direct sales agent of NBFI to examine the consumer borrowing and role of financial institutions.
The research concludes that consumers are relying much more on NBFI and it is not risky & difficult to borrow loan because of policies & norms regarding loans and availability of flexible financial options. CHAPTER - 1
This chapter is introduction about the research topic. It highlights the aims and objectives of the research. It also tells about the structure of the dissertation and the summary of this chapter. 1.2 BACKGROUND INFORMATION
Each and every country has its own financial system. Financial system usually consists of financial market, financial intermediaries and financial product or service. Finance in simple words means ‘money’ but finance is a source which provides funds to a particular activity. A
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