India has been facing the challenge of credit over the last 10 years. The challenge is indicative of issues India’s financial sector faces. In light of this, examine the issues faced by the financial institution in India and suggest the changes to make them strong to cater to the demands of Indian economy. 10 marks

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https://indianexpress.com/article/opinion/columns/ant-group-ipo-alibaba-group-china-nationalised-banks-india-7048305/
In the intro, mention the importance of credit for the development of the economy.
In the body, discuss the challenges faced by the financial institutions in India- regulatory hurdles, issues in catering to the priority sector, bad loans, a limited number of banks, unwillingness of foreign institutions to lend when needed etc. In the next part suggest changes- creation of bank holding company for to replace the department of financial services, creation of more banks, strengthening of RBI etc.
Conclude by mentioning the importance of freedom for financial institutions instead of protectionism.

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