Mumbai, Dec. 29 -- The Reserve Bank of India (RBI) said on Monday that banks will continue to face competition from non-bank sources in lending to companies, while fast-changing technology could change how customers transact and pose cybersecurity risks.

In its report on trends and progress of banking In India, the RBI said that notwithstanding a moderation in bank credit in FY25, total flow of financial resources to the commercial sector increased. This was driven by a pick up in flow from non-bank resources, led by the equity markets, it said.

RBI defines the flow of financial resources to the commercial sector as the aggregate of bank loans, loans from non-banks, and investment by Life Insurance Corp. of India in corporate debt, apar...