Subramanian Swamy for CBI probe into grant of small finance bank licenses Alleging flouting of its own rules by RBI in grant of 10 small finance bank licences, BJP leader Subramanian Swamy on Wednesday asked Prime Minister Narendra Modi to order a CBI-led probe into the matter. Seeking action against RBI officials, including Governor Raghuram … Read More →
Frauds – Future approach towards monitoring of frauds in NBFCs Please refer to circulars DNBS.PD.CC.No.127/ 03.10.42/2008-09 dated August 14, 2008, DNBS.PD.CC.No.256/03.10.042/2011-12 dated March 02, 2012 and DNBS.PD.CC.No.314/03.10.042/2012-13 dated December 13, 2012 on the captioned subject. It has been decided to revise the threshold for reporting of frauds and submission of quarterly progress reports on frauds … Read More →
NBFC – Factors (Reserve Bank) Directions, 2012 – Review The Reserve Bank of India had reviewed the guidelines on provision of factoring services by banks and specified certain conditions under which banks can departmentally undertake factoring activities. To ensure against regulatory gaps/ arbitrage if any, arising from differential regulations as between NBFC-Factors and banks, the … Read More →
Government is expected to propose 100% FDI in 25 more segments of NBFCs including commodity broking and infrastructure debt fund with a view to attract more foreign inflows. The proposal, according to sources, is based on the announcement for allowing FDI in more categories of Non-Banking Financial Company (NBFCs) activities, made by Finance Minister Arun … Read More →
NBFCs are doing functions similar to banks. What is difference between banks & NBFCs ? NBFCs are doing functions akin to that of banks, however there are a few differences: (i) a NBFC cannot accept demand deposits (demand deposits are funds deposited at a depository institution that are payable on demand — immediately or within … Read More →
FDI in Non-Banking Finance Companies (NBFC) is allowed up to 100% under the automatic route in only the following activities: Merchant Banking Under Writing Portfolio Management Services Investment Advisory Services Financial Consultancy Stock Broking Asset Management Venture Capital Custodian Services Factoring Credit Rating Agencies Leasing & Finance Housing Finance Forex Broking Credit Card Business Money … Read More →
The Reserve Bank on Thursday asked non- systematically important deposit taking and non-deposit-taking NBFCs, including infra and micro-lenders, to set aside 15% of their aggregate capital towards their holdings in Central and State Governments’ debts as prudential measures. In a circular, the central bank said the new norms will be applicable to all deposit accepting … Read More →
The Reserve Bank has rejected requests from non-banking finance companies (NBFCs) to become an agent to sell pension products of PFRDA. The RBI had received proposals from the NBFCs, wherein they had sought approval from the regulator for undertaking Point of Presence (PoP) services under Pension Fund Regulatory and Development Authority (PFRDA) for National Pension … Read More →
The Reserve Bank of India(RBI) revised guidelines for NBFC factor companies stipulating that there should be board approved limit for underwriting commitments with a view to mitigate credit risk. Besides, the RBI has also raised a threshold for reporting of frauds from Rs 25 lakh to Rs 1 crore for Non-banking Financial Company (NBFC). “Factoring … Read More →
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act that is engaged in the business of loans and advances, receiving deposits (some NBFC’s only), acquisition of stocks or shares, leasing, hire-purchase, insurance business, chit business. Therefore, NBFCs lend and take deposits similar to banks; however there are a few differences a) … Read More →