RBI's provisions of Sections 45-IA, 45-IB, and 45-IC to not apply to NBFCs



Quick Summary
The Reserve Bank of India (RBI) has announced that certain sections of the RBI Act, 1934, will no longer apply to non-banking financial companies (NBFCs) that are specifically Housing Finance Institutions. This exemption supersedes a previous notification from 2019. The move aims to streamline regulations for these specialised financial entities.

The Reserve Bank of India has declared that the provisions of Sections 45-IA, 45-IB, and 45-IC of the Reserve Bank of India Act, 1934 (2 of 1934) shall not apply to a non-banking financial company. Read the official announcement below:

RESERVE BANK OF INDIA
(Department of Regulation)
NOTIFICATION
Mumbai, the 18th November, 2020

No. DOR.049/CGM(MM)–2020.—In exercise of the power conferred by section 45-NC of the Reserve Bank of India Act, 1934, and in supersession of the earlier notification No. DOR. 047/CGM (MM)- 2019 dated 19th November, 2019 (published in Extraordinary- Part III – Section 4 of the Gazette of India dated 19th November 2019) on the subject, the Reserve Bank of India, on being satisfied that it is necessary to do, hereby declares that the provisions of Sections 45-IA, 45-IB and 45-IC of the Reserve Bank of India Act, 1934 (2 of 1934) shall not apply to a non-banking financial company which is a Housing Finance Institution as defined in clause (d) of section 2 of the National Housing Bank Act, 1987 (53 of 1987).

MANORANJAN MISHRA, Chief General Manager
[ADVT.-III/4/Exty./367/2020-21]

FAQ :

Sections 45-IA, 45-IB, and 45-IC of the Reserve Bank of India Act, 1934, are not applicable.

The announcement specifically applies to non-banking financial companies that are Housing Finance Institutions, as defined in the National Housing Bank Act, 1987.

The declaration is made in exercise of the power conferred by section 45-NC of the Reserve Bank of India Act, 1934.

Yes, this notification supersedes the earlier notification No. DOR. 047/CGM (MM)- 2019 dated 19th November, 2019.

The official announcement was made in Mumbai on the 18th November, 2020.




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