Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Regarding MFI

196 views

Save Share

Rakesh Yadav

32 Points Posted on 28 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)

Quick Summary

This discussion clarifies that you can operate a microfinance institution under a trust without direct RBI registration, provided you adhere to RBI guidelines. However, to establish a Non-Banking Financial Company (NBFC) MFI, a trust cannot directly register. Instead, the trust must be converted into a company registered under the Companies Act, such as a Section 8 company, before it can be considered for NBFC MFI status.

Guest

Posted on 29 March 2020

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.