{"id":265084,"date":"2022-04-06T13:30:10","date_gmt":"2022-04-06T08:00:10","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=265084"},"modified":"2022-04-06T10:38:34","modified_gmt":"2022-04-06T05:08:34","slug":"rbi-notifies-net-owned-fund-for-nbfcs-to-commence-business","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/06\/rbi-notifies-net-owned-fund-for-nbfcs-to-commence-business\/","title":{"rendered":"RBI notifies net owned fund for NBFCs to commence business"},"content":{"rendered":"<p style=\"text-align: justify;\"><span id=\"page1R_mcid175\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">The Reserve <\/span><span dir=\"ltr\" role=\"presentation\">Bank of India has specified ten crore rupees as net owned fund (NOF) required for following categories of non- <\/span><span dir=\"ltr\" role=\"presentation\">banking financial companies to commence or carry on the business of non-banking financial institution from <\/span><span dir=\"ltr\" role=\"presentation\">October 01, 2022:<\/span><\/span><span id=\"page1R_mcid176\" class=\"markedContent\"><br role=\"presentation\" \/><\/span><\/p>\n<p style=\"text-align: justify;\"><span id=\"page1R_mcid176\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">(a)<\/span> <span dir=\"ltr\" role=\"presentation\">Non-banking financial company<\/span> <span dir=\"ltr\" role=\"presentation\">\u2013<\/span> <span dir=\"ltr\" role=\"presentation\">Investment and Credit Company (NBFC-ICC)<\/span><\/span><span id=\"page1R_mcid177\" class=\"markedContent\">; <br role=\"presentation\" \/><span dir=\"ltr\" role=\"presentation\">(b)<\/span> <span dir=\"ltr\" role=\"presentation\">Non-banking financial company<\/span> <span dir=\"ltr\" role=\"presentation\">\u2013<\/span> <span dir=\"ltr\" role=\"presentation\">Micro Finance Institution (NBFC-MFI)<\/span><\/span><span id=\"page1R_mcid178\" class=\"markedContent\">; <br role=\"presentation\" \/><span dir=\"ltr\" role=\"presentation\">(c)<\/span> <span dir=\"ltr\" role=\"presentation\">Non-banking financial company<\/span> <span dir=\"ltr\" role=\"presentation\">\u2013<\/span> <span dir=\"ltr\" role=\"presentation\">Factor (NBFC-Factor)<\/span><\/span><span id=\"page1R_mcid179\" class=\"markedContent\">. <br role=\"presentation\" \/><\/span><\/p>\n<p style=\"text-align: justify;\"><span id=\"page1R_mcid179\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">Provided<\/span> <span dir=\"ltr\" role=\"presentation\">that<\/span> <span dir=\"ltr\" role=\"presentation\">the<\/span> <span dir=\"ltr\" role=\"presentation\">above<\/span> <span dir=\"ltr\" role=\"presentation\">categories of existing<\/span> <span dir=\"ltr\" role=\"presentation\">non-banking<\/span> <span dir=\"ltr\" role=\"presentation\">financial<\/span> <span dir=\"ltr\" role=\"presentation\">companies<\/span> <span dir=\"ltr\" role=\"presentation\">holding a<\/span> <span dir=\"ltr\" role=\"presentation\">certificate<\/span> <span dir=\"ltr\" role=\"presentation\">of <\/span><span dir=\"ltr\" role=\"presentation\">registration as on October 22, 2021 issued by the Reserve Bank of India and having net owned fund of less than ten <\/span><span dir=\"ltr\" role=\"presentation\">crore rupees, shall achieve the NOF of \u20b910 crore a<\/span><span dir=\"ltr\" role=\"presentation\">s per the following glide path:<\/span><\/span><\/p>\n<p style=\"text-align: justify;\">\n<table style=\"height: 509px;\" width=\"806\">\n<tbody>\n<tr>\n<td width=\"200\">NBFCs<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">By March 31, 2025<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">By March 31, 2027<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"200\">NBFC-ICC<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b95 crore<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b910 crore<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"200\">NBFC-MFI<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b97 crore<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b910 crore<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"200\">NBFC-MFI in North Eastern Region of<br \/>\nthe country<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b95 crore<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b910 crore<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"200\">NBFC-Facto<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b97 crore<\/p>\n<p>&nbsp;<\/td>\n<td width=\"200\">\u20b910 crore<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span id=\"page1R_mcid181\" class=\"markedContent\"><\/span><span id=\"page1R_mcid244\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\"><br \/>\n<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India has specified ten crore rupees as net owned fund (NOF) required for following categories of non- banking <\/p>\n","protected":false},"author":8808,"featured_media":265081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[],"class_list":["post-265084","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI notifies net owned fund for NBFCs to commence business | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/06\/rbi-notifies-net-owned-fund-for-nbfcs-to-commence-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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mechanism for select Non-Banking Financial Companies (NBFCs)","author":"Bhumika Indulia","date":"November 16, 2021","format":false,"excerpt":"On November 15, 2021, the Reserve Bank has directed Deposit-taking NBFCs (NBFCs-D) with 10 or more branches and Non-Deposit taking NBFCs (NBFCs-ND) with asset size of Rs.5,000 crore and above having public customer interface to appoint Internal Ombudsman (IO) at the apex of their internal grievance redress mechanism within a\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/rbi_2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/rbi_2.jpg?resize=350%2C200&ssl=1 1x, 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compliance of the same by every\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":237517,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/16\/ori-hc-%e2%94%82-are-private-banking-companies-discharging-banking-services-amenable-to-writ-jurisdiction-hc-analyses\/","url_meta":{"origin":265084,"position":3},"title":"Ori HC | Are private banking companies discharging banking services amenable to writ jurisdiction? HC analyses","author":"Editor","date":"October 16, 2020","format":false,"excerpt":"Orissa High Court: Biswajit Mohanty J., dismissed the petition being non-maintainable. The facts of the case are such that the petitioner took loan from opposite party 1, a Non-Banking Financial Company i.e. NBFC recognized by Reserve Bank of India and is understood as such under the provisions of the SARFAESI\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":221480,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/25\/cci-approves-acquisition-of-shareholding-in-aditya-birla-capital-ltd-by-jomei-investments-ltd\/","url_meta":{"origin":265084,"position":4},"title":"CCI approves acquisition of shareholding in Aditya Birla Capital Ltd. by Jomei Investments Ltd.","author":"Bhumika Indulia","date":"October 25, 2019","format":false,"excerpt":"CCI approves acquisition of 4.15% of the shareholding in Aditya Birla Capital Limited by Jomei Investments Ltd. of Combination under Section 31(1) of the Competition Act, 2002 The Competition Commission of India (CCI) approved acquisition of 4.15% of the shareholding in Aditya Birla Capital Limited (ABCL) by Jomei Investments Limited\u2026","rel":"","context":"In &quot;Business News&quot;","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":239372,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/19\/rbi-ss-45-ia-45-ib-and-45-ic-of-rbi-act-shall-not-apply-to-a-non-banking-financial-company-which-is-a-housing-finance-institution\/","url_meta":{"origin":265084,"position":5},"title":"RBI | Ss. 45-IA, 45-IB and 45-IC of RBI Act shall not apply to a non-banking financial company which is a Housing Finance Institution","author":"Bhumika Indulia","date":"November 19, 2020","format":false,"excerpt":"Reserve Bank of India (RBI) declares that the provisions of Sections 45-IA, 45-IB and 45-IC of the Reserve Bank of India Act, 1934 shall not apply to a non-banking financial company which is a Housing Finance Institution as defined in clause (d) of Section 2 of the National Housing Bank\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/265084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=265084"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/265084\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/265081"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=265084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=265084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=265084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}