RBI: Banks Face Competition from Equity Markets and Technology Amidst Shifting Funding Sources
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RBI: Banks Face Competition from Equity Markets and Technology Amidst Shifting Funding Sources

The Reserve Bank of India (RBI) reported that banks will face ongoing competition from non-bank lenders and evolving technology. In FY25, despite slower bank credit growth, overall financial resources to the commercial sector increased, largely due to buoyant equity markets, increased corporate bond placements, and enhanced credit flow from NBFCs. RBI noted that large corporations are increasingly using market-based instruments and internal resources for funding, reducing reliance on bank credit.

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