Non-banking financial company (nbfc)

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2013 Please tell the condition for a company to be a NBFC co. ???

Ajay Mishra

Ajay Mishra (Expert)
Follow

11 October 2013 Hi

You are going to incorporate NBFC company, then you should aware of the RBI Act, 1934.

 Section 45-IA of the Reserve Bank of India Act, 1934 provides that No non-banking financial company shall commence or carry on business of a non-banking financial institution without –

obtaining a certificate of registration issued under Chapter IIIB; and having the net owned fund of twenty-five lakh rupees or such other amount, not exceeding two hundred lakh rupees, as the Bank may, by notification in the Official Gazette, specify.

Reserve Bank of India vide its Notification No. DNBS 132 / CGM (VSNM) – 99, dated 20/04/1999 has increased the requirement of “net owned fund” from Rs.25 lakh to Rs.200 Lakh for the NBFC which commences business of a non-banking financial institution on or after April 21, 1999.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2013 And what else with to see other then NOF

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2013 Means there are other conditions . Since I had a co. But we have to see whether it is eligible for NBFC registration

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now