RBI/2013-14/609
DNBS.CC.PD.No.377/03.10.01/2013-14
May 27, 2014
To
All Non-Banking Financial Companies
Dear Sir,
Rounding off transactions to the Nearest Rupee by NBFCs
It has come to the notice of the Reserve Bank that some non-banking financial companies (NBFCs) are carrying out transactions, including payment of interest on deposits/ charging interest of advances etc., without rounding off to the nearest rupee. In order to obviate unnecessary discomfort to the public and also to align with the prevalent practice as applicable to banks, NBFCs are advised that all transactions, including payment of interest on deposits/ charging of interest on advances, should be rounded off to the nearest rupee, i.e. fractions of 50 paise and above shall be rounded off to the next higher rupee and fractions of less than 50 paise should be ignored. However, NBFCs should ensure that cheques/ drafts issued by clients containing fractions of a rupee should not be rejected by them.
Yours faithfully
(A.Mangalagiri)
General Manager
CAclubindia
Guest
Notification No : RBI/2013-14/609Published in Community & General