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

Last updated: 20 November 2020

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The Reserve Bank of India (RBI) has issued a notification stating that certain provisions of the RBI Act, 1934, specifically Sections 45-IA, 45-IB, and 45-IC, will not be applicable to Non-Banking Financial Companies (NBFCs) that are classified as Housing Finance Institutions. This supersedes a previous notification from November 2019.

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, will not apply.

These exemptions apply to Non-Banking Financial Companies that are Housing Finance Institutions, as defined in the National Housing Bank Act, 1987.

The exemption is granted by the Reserve Bank of India under the powers 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.

Notification No : No. DOR.049/CGM(MM)–2020
Source : http://egazette.nic.in/WriteReadData/2020/223173.pdf

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