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With the onset of liberalization, the boundaries between the banks and financial institutions have blurred with each entering the turf of the other. With access to low cost funds no longer available to these institutions, they have increasingly been at disadvantage vis-à-vis banks, who have benefited from access to low cost retail deposits. Accordingly, the Khan Committee Report on the Financial Institutions has recommended that these institutions be allowed to convert themselves into banks or transform into non-banking financial institutions. Introduction |
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