📄 Abstract
Non-Banking Financial Companies (NBFCs) have become a pivotal component of Indias financial architecture, complementing the banking system by providing credit access to underserved and unbanked segments of the population. The period 20252026 marks a transformative phase for the NBFC sector, driven by digital lending innovations, fintech collaborations, telecom-based financial ecosystems, and strengthened regulatory oversight by the Reserve Bank of India (Reserve Bank of India, 2025; 2026). This study examines the structural evolution, economic role, regulatory framework, recent policy developments, and emerging risks within the NBFC sector. Using a descriptive and analytical research design based on secondary data from RBI reports, government publications, financial news sources, and academic literature, the study finds that NBFCs are transitioning into digitally integrated credit intermediaries that play a crucial role in financial inclusion, MSME financing, and infrastructure development (Mishra & Kumar, 2021; World Bank, 2022). However, the sector continues to face challenges related to liquidity risk, asset quality, governance, regulatory compliance, and cybersecurity threats (Kaur & Singh, 2022; CRISIL, 2025). The paper concludes that NBFCs will remain central to Indias financial deepening and inclusive growth, provided that regulatory discipline, technological resilience, and governance frameworks are strengthened.
🏷️ Keywords
📚 How to Cite:
Dr. P. Govindaraj , Dr V. Murugesh , TRANSFORMING INDIA'S CREDIT ECOSYSTEM: THE EVOLVING ROLE OF NBFCS IN THE ERA OF DIGITAL LENDING AND REGULATORY REFORMS , Volume 12 , Issue 2, February 2026, EPRA International Journal of Multidisciplinary Research (IJMR) , DOI: https://doi.org/10.36713/epra26241