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The shift in India’s traditional bank credit

Corporations are shifting away from traditional bank credit and increasingly tapping into the bond market for their funding needs, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday while announcing the latest policy rates. He attributed this shift to the quicker transmission of policy rate changes in the money markets compared to banks.This change in corporate behaviour reflects the broader efficiency and flexibility offered by non-bank funding options, particularly in a monetary environment where interest rate changes are being transmitted more effectively outside the traditional banking system.India’s 45 Lakh cr corporate bond market dominated by Institutional giants, is getting eyed by Retail and HNI investors for the 1st time, Instead of debt fund you can directly invest in bonds which will yield you more returns!.Is the change atributed to changing global geopolitics ?

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