'While seemingly underdogs in the Indian financial markets, NBFCs punched above their weight in destabilising the Indian economy’. In light of the above statement examine the role of NBFCs in the Indian economy. Also, explain the reasons for the recent crisis they are facing and the role of Credit Rating Agencies in the crisis. (15 Marks) - Civilsdaily

‘While seemingly underdogs in the Indian financial markets, NBFCs punched above their weight in destabilising the Indian economy’. In light of the above statement examine the role of NBFCs in the Indian economy. Also, explain the reasons for the recent crisis they are facing and the role of Credit Rating Agencies in the crisis. (15 Marks)

Mentor’s comment: https://www.epw.in/journal/2020/2/h-t-parekh-finance-column/revisiting-nbfc-crisis.html The article examines the crisis NBFCs found themselves in and the genesis of the crisis. In the intro, briefly explain what are NBFCs. In the main body explain how NBFCs are a significant cog in the wheel of the Indian economy. State some figures to stress the overall importance of NBFCs in … Continue reading ‘While seemingly underdogs in the Indian financial markets, NBFCs punched above their weight in destabilising the Indian economy’. In light of the above statement examine the role of NBFCs in the Indian economy. Also, explain the reasons for the recent crisis they are facing and the role of Credit Rating Agencies in the crisis. (15 Marks)