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Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2009 One Private Company registered as NBFC can accept public deposits?

If No then what would be better option , either 1. to convert into Public NBFC Company or 2. convert into Co-operative Bank ?

all the professional are requested to give your views who has already handled this matter.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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02 December 2009 All NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid Certificate of Registration with authorisation to accept Public Deposits can accept/hold public deposits. NBFCs authorised to accept/hold public deposits besides having minimum stipulated Net Owned Fund (NOF) should also comply with the Directions such as investing part of the funds in liquid assets, maintain reserves, rating etc. issued by the Bank.

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