Regarding MFI

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Rakesh Yadav

16 Points Joined March 2020

I have a Trust and I want to run a microfinance under this, can I run it. And later I want to register a NBFC MFI
What I can do for it.
Please suggest me.

Thanks.

Replies (2)

Guest

Yes, you can run a Micro finance institution under a trust. In this case you don't need to take any registration from RBI but you have to follow RBI guidelines.

and later on if you want to start a NBFC MFI, then trust are not allowed to start NBFCs. A NBFC should be a company registered under Companies Act. In that case you have to convert your Trust to section 8 company.