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 Directors can be removed or superseded by RBI.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.