Topic Details (Notes format)

Shadow Banking and NBFC Sector

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

Non-banking financial companies (NBFCs) offer credit outside traditional banking channels—supporting SMEs, vehicle loans, and consumer finance. However, unbridled growth risks liquidity mismatches and defaults. The IL&FS crisis highlighted the need for tighter RBI oversight on asset-liability management. Exams focus on how NBFC expansions complement banks yet require prudent regulation to prevent systemic shocks and ensure depositors’ protection.

Practice Questions

Which of the following is a direct tax?

View Question

What is the meaning of “disguised unemployment”?

View Question

What is meant by “crowding out” in economics?

View Question

Which of the following is an example of a renewable resource?

View Question

What is meant by the term “current account deficit”?

View Question

What does the term "depreciation" refer to in the context of assets?

View Question

What is the objective of the Goods and Services Tax (GST)?

View Question

Which of the following best describes “capital formation”?

View Question

Which is the largest source of tax revenue for the Government of India?

View Question

What is the main aim of Public Distribution System (PDS) in India?

View Question