Rs. 10 Crore as Net Owned Fund required for NBFC
Rs. 10 Crore as Net Owned Fund required for NBFC
Notification No. DOR.CRE.060.CGM(MM) 2022.—In exercise of the powers conferred by clause (b) of sub-section (1) of Section 45-IA of the Reserve Bank of India Act, 1934 (Act 2 of 1934) and by Section 3 and Section 4 of the Factoring Regulation Act, 2011 (Act 12 of 2012) and all the powers enabling it in that behalf, the Reserve Bank of India hereby specifies ten crore rupees as net owned fund (NOF) required for following categories of non banking financial companies to commence or carry on the business of non-banking financial institution from October 01, 2022-
(a) Non-banking financial company – Investment and Credit Company (NBFC-ICC)
(b) Non-banking financial company – Micro Finance Institution (NBFC-MFI)
(c) Non-banking financial company – Factor (NBFC-Factor)
Provided that the above categories of existing non-banking financial companies holding a certificate of registration as on October 22, 2021 issued by the Reserve Bank of India and having net owned fund of less than ten crore rupees, shall achieve the NOF of ₹10 crore as per the following glide path:
- The words and expressions used herein shall have the same meaning as assigned to them in Master Direction – NonBanking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
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