Rbi gets more powers over nbfcs

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)   (8224 Points)

11 August 2019  

Amendments to RBI Act made vide Part-I of Chapter-VI of Finance (No.2) Act 2019 have come into force on 9.8.2019.

Now RBI has got lot of powers over functioning of NBFCs. Minimum net owned fund can be raised upto Rs.100 crores. Directors can be removed or superseded by RBI. Auditors can be removed or debarred for 3 years. Scheme for amalgamation/ reconstruction etc. can be approved. Submission of information of group companies can be mandated. Amount of penalties increased.