Small Finance Bank license: Objectives, Rules, Key Challenges

By |2019-09-11T05:14:29+00:00June 29th, 2019|Categories: NBFC|Tags: , , , , |

Introduction Small finance banks are a type of bank that helps those sections which do not get support from other banks. Small finance banks provide basic bank facilities to the economical sections which are not supported by the other banks. It helps to provide financial aid to the small business units, small or marginal farmers, micro or [...]

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FAQs on NBFC

By |2018-10-25T08:03:36+00:00September 6th, 2018|Categories: NBFC|Tags: , , |

FAQs on NBFC NBFCs or Non-Banking Financial Companies are a major contributor to the 12.5% GDP rise in India. In addition to this, NBFCs have a projected growth of a staggering 19-21% in the financial year 2018-19. So it's pretty clear that NBFCs are a major part of India's economy. So what are NBFCs? How do [...]

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NBFC Compliances and Returns

By |2018-10-25T08:05:08+00:00August 31st, 2018|Categories: NBFC|Tags: , , , , |

Introduction to NBFC Compliances and Returns It's no doubt that NBFCs have changed the landscape of the Financial Services Sector in India. NBFCs have a projected growth of a tremendous 19-21% for the 2018-19 Financial Year. However, ever since the infamous incident with Sahara India Financial Corporation in 2015, the RBI has made stricter regulations for [...]

NBFC Vs Nidhi Company Vs Micro-Finance

By |2019-01-24T10:57:50+00:00August 31st, 2018|Categories: NBFC|Tags: , , , , , |

What is NBFC An NBFC is defined as the business of loans and advances or acquisition of shares, stocks, debentures, bonds as well as securities whether issued by the government or local authority but excluding such institutions whose principal business is related to agricultural activities, industrial activity or purchase or sale of any goods or services. [...]

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Prerequisites of NBFC Registration

By |2018-10-25T08:06:51+00:00August 30th, 2018|Categories: NBFC|Tags: , , , , |

Introduction to NBFCs Non-Banking Financial Institutes or NBFCs are one of the major contributors to the 12.5% rise in GDP from the finance sector. NBFC registration procedures have been made very simplistic and easy to perform. Before we delve into the details, however, let's briefly describe what NBFCs are NBFC are legal entities under RBI regulations, [...]

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RBI hitting on Government owned NBFCs – Withdrawing Exemptions

By |2018-10-25T08:08:09+00:00August 30th, 2018|Categories: NBFC|Tags: , , , |

Overview With the regulation governing Non-Banking Financial Companies, the RBI has always been ahead to play an important role in declaring compliances to the government-owned companies as well as non-government companies. In this article, we will let you know what initiatives the RBI has taken for the government NBFCs with respect to compliance as well as [...]

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Section 269SS and 269T applicable to NBFC: RBI

By |2018-10-25T08:10:14+00:00August 29th, 2018|Categories: NBFC|Tags: , , , , |

Introduction to Sections 269SS and 269T In a notification released on March 9, 2017, the RBI declared that sections 269SS and 269T will be applicable to NBFCs. These stipulations thus, add to the list of NBFC compliances in India. Before we delve into what this means for these organizations, let's take a brief look at what [...]

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Fulfill Obligations under PML rules: RBI to NBFCs

By |2018-10-25T08:12:16+00:00August 28th, 2018|Categories: NBFC|Tags: , , , |

RBI getting Stricter The Reserve Bank of India (RBI) is taking radical steps to ensure compliant, safe and healthy business practices from NBFCs. In the month of July 2018 alone, RBI canceled the license of over 100 NBFCs. RBI had blacklisted some of these organizations and some willingly surrendered their licenses. The RBI has also flagged over [...]

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NBFC Micro Finance Institution Requirements & Registration

By |2018-10-25T08:11:32+00:00August 27th, 2018|Categories: NBFC|Tags: , , , , , |

What is NBFC Micro Finance Institution NBFC Microfinance institution (NBFC-MFI) is the financial institution in which a minimum net owned fund is Rs. 5 crores. But in the North Eastern region of the country, it is only Rs. 2 crore. 'Qualifying assets' are not less than 85% of its net assets.  The income of the NBFC-MFI extracts from [...]

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Ombudsman Scheme for NBFCs

By |2018-10-25T08:13:27+00:00August 27th, 2018|Categories: NBFC|Tags: , , , , , |

Introduction to Ombudsman Scheme Non-Banking Financial Companies (NBFCs) have surely changed the landscape of the financial services sector in India. NBFCs have enabled many people to go on and pursue their goals without worrying for capital by providing credit facilities. Check out: Classifications of NBFCs. The Reserve Bank of India (RBI) released a notification on the [...]

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