Reserve Bank of India
Non-Banking Finance Companies in India experienced several ups and downs over the years, and in particular during the financial sector reforms era since 1991. At a time when the commercial banking system was undergoing drastic changes in almost all facets of their working, setting right their balance sheets, NBFCs made merry with depositors and borrowers by operating with high rates of interest. It was in 1998, after the CR Bhansali led NBFC-scam and the recommendations of the Vasudev Committee, the NBFCs sector got streamlined.
Here is some data on NBFCs (as given in the RBI Report on Trend and Progress of Banking in India - 2009) under the chapter titled "Non Banking Financial Institutions" the consolidated picture of NBFCs as on March 31, 2009 is furnished. From a peak of about 45,000 NBFCs all over the country (registered or unregistered with RBI), the number came down to less than 13,000 (including those Deposit taking - 336). The table no. VI.14 furnishes the data of NBFCs registered with RBI between the years 1999 (7,855) and 2009 (12,740).
Thanks to the series of financial sector measures by RBI and GOI, all types of institutions viz., Commercial Banks (Public (including SB Group and IDBI Bank), Old & New Private, Foreign, Cooperative, Regional Rural and Local Area Banks), Financial Institutions (viz., EXIM Bank, NABARD, NHB and SIDBI et al), Non-Banking Financial Institutions (Leasing, Hire Purchase, Investment Companies, Housing Financing Companies, etc), Primary Dealers, Stock Exchanges and all other Financial Institutions like Credit Information Companies, Credit Rating Agencies, Asset Reconstruction Companies, Securitisation Companies, etc., have fine-tuned their working methods transparently.