Recession is one of the worst phase of Trade cycle, which has classified as Depression, Recovery, Expansion and Recession. So it is necessary to take action by Indian Government to combat the emergency of Recession. It is noticed that slashed capitalisation and uninspired devoted capital market had put pressures on major sectors of the financial system, as Non Banking Financial Institutions and mutual Funds. In today’s uncertain business environment, even though lendable Resources with banks have been significantly increased though reduced CRR and SLR requirements, it has not prevailed  in proportionately increased lending. This paper looks at possible reasons Evaluated by Government of India to combat the crisis and recommends measures that could push banks to lend more.

Keywords: NBFCs, CRR, SLR, RBI, Commercial Banks, Mutual Funds, Devoted.