Shadow banking in India – Features and progress Dr. Vijayakumar A.*, Ms. Jayachitra S.** *Associate Professor, Commerce, Erode Arts and Science College, Erode, Tamil Nadu **PH.D., Research Scholar, Commerce, Erode Arts and Science College, Erode, Tamil Nadu Online published on 8 April, 2014. Abstract The global developments in the context of financial crisis shook the entire world, and the consequent overhaul of the regulatory framework. Both the regular banking system and the shadow banking system have come under greater regulatory focus on account of gaps in the respective regulatory frameworks and also, most importantly, on account of inter-linkages between both the systems. The shadow banking system that had burgeoned in the run up to the global financial crisis was one of the major causes of the global turmoil and quite understandably, the regulators are revamping its regulation to ensure financial stability. This paper focuses on the conceptual framework of shadow banking, the recent guidelines issued by Reserve Bank of India based on the recommendations of the Working Group on NBFCs, the global shadow banking sector along with the recent international initiatives in the regulation of the sector, trace the genesis and development of the NBFC sector in India as well as the evolution of its regulatory framework and finally the thought process which led to the setting up of the Working Group. Top Keywords Banking, financial, crisis, global. Top |