Change In ‘Control' Of An Existing NBFC / HFC

NBFCs play a crucial role in the Indian economy because in a country like India, where 70% of the population lives in rural areas, NBFCs can often give credit to small businesses who do not meet the stringent criteria that banks require to lend money.

According to a report released in the beginning of 2016 by consulting firm PwC India stated that by 2020, credit lending by Indian NBFCs is estimated to account for anywhere between 18.2% and 20.9% of the total credit off-take in the country.

As per the financial stability report released by the Reserve Bank of India ("RBI") in 2016, NBFC loans expanded 16.6% in the year, twice as fast as the 8.8% credit growth across the banking sector on an aggregate level. The NBFC sector's performance and growth looks promising vis-à-vis banks despite the applicability of regulatory norms.