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    Question

    NBFCs were the largest net borrowers of funds from the

    financial system, which of the following was second highest net borrowers of funds from the financial system?
    A Housing Finance Companies Correct Answer Incorrect Answer
    B Small Finance Companies Correct Answer Incorrect Answer
    C Non-Banking Financial Companies Correct Answer Incorrect Answer
    D Investment Corporation of India Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Over the last decade, NBFCs have witnessed phenomenal growth. From being around 12% of the balance sheet size of banks in 2010, these are now more than a quarter of the size of banks. NBFCs are the largest net borrowers of funds from the financial system with gross payables of ₹ 9.37 lakh crore as of 30 September 2020. HFCs are the second largest borrowers of funds from the financial system with gross payables of around ₹ 6.20 lakh crore as at 30 September 2020.

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