Revised Regulatory framework for NBFC
The evolution and growth of Non-Banking Finance Company (NBFC) sector has been significant in the recent past. NBFCs form an integral part of the financial sector and therefore are exposed to similar risks and challenges that are faced by other players in the financial sector. Therefore, the need was felt to address the risks, and also to address the concerns of NBFCs. The recommendations made by the Working Group on Issues and Concerns in the NBFC Sector and the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households were considered and the changes in the regulatory framework have been introduced (“Revised Directions”). A. Minimum NOF Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com 1. As per Section 45-IA of the RBI Act, 1934, all the NBFCs are required to obtain a Certificate of Registration (CoR) from the RBI to commence/carry on business of NBFI. The said section also prescribes the minimum Net Owned Fun...