Shadow banking means the banking system which is lead by the non banking financial activities it means which is conducted by on regulated organisations.
The major difference between banking and non banking system is the banking system is doing the cheque and demand draught but none banking system does not swing that type of Banking activity.
In the context of India the shadow banking online banking activity come under the provision of NBFC(non banking financial Company) Act 1956 of India.
It is engaged in the business of loans and advances, acquisition of share, stock, Bond hire-purchase insurance business or Chit-Fund business but does not include any institution whose principal business includes.
The role of shadow banking on Indian economy must we take essential part, as we know in India the literacy rate and banking awareness is very low with unorganized sector of Indian economy must be play a vital role.
In context of shadow banking it is very essential for unorganized sector of Indian economy for the capital formation and Employment generation.The MNCs which is fully depend on NBFC and it provided the initial investment for that.
Shadow banking doing lots of beneficial effect on Indian economy as increase capital formation, increase initial investment, increase employment generations, increase economic activity, increase production capacity, increase women empowerment, increase as precautionary of money, increase welfare and many more.
But sometime it become very hazardous for the people because of unstability of that NBFC type of Banking and sometimes it become under deficit and bankrupt situation.
Lastly, overall we can say it very essential for Indian economiy and "Shadow banking like a knife if we hold properly it can solve lots of problem but if we hold with edge it become very dangerous for economy".
The major difference between banking and non banking system is the banking system is doing the cheque and demand draught but none banking system does not swing that type of Banking activity.
In the context of India the shadow banking online banking activity come under the provision of NBFC(non banking financial Company) Act 1956 of India.
It is engaged in the business of loans and advances, acquisition of share, stock, Bond hire-purchase insurance business or Chit-Fund business but does not include any institution whose principal business includes.
The role of shadow banking on Indian economy must we take essential part, as we know in India the literacy rate and banking awareness is very low with unorganized sector of Indian economy must be play a vital role.
In context of shadow banking it is very essential for unorganized sector of Indian economy for the capital formation and Employment generation.The MNCs which is fully depend on NBFC and it provided the initial investment for that.
Shadow banking doing lots of beneficial effect on Indian economy as increase capital formation, increase initial investment, increase employment generations, increase economic activity, increase production capacity, increase women empowerment, increase as precautionary of money, increase welfare and many more.
But sometime it become very hazardous for the people because of unstability of that NBFC type of Banking and sometimes it become under deficit and bankrupt situation.
Lastly, overall we can say it very essential for Indian economiy and "Shadow banking like a knife if we hold properly it can solve lots of problem but if we hold with edge it become very dangerous for economy".
