NO RBI APPROVAL
In India, finance businesses are approved only to Non-Banking Finance Companies (NBFC) and directed by RBI. However, some business forms have been granted an exemption by the Reserve Bank of India (RBI) to do banking activities up to a specified limit. The RBI by its master circular: RBI/2015-16/15 DNBR (PD) CC.No.052/03.10.119/2015-16 Dated July 01, 2015, has released all Section 8 Companies involved in microfinance activities.
As per Para 2 (iii), Sections 45-IA, 45-IB, and 45-IC of the Reserve Bank of India Act, 1934 (2 of 1934) must not apply to any non-banking financial company which is involved in activities:
(a) Engaged in micro-financing activities, giving credit not more than Rs. 50,000 for a business enterprise. And, Rs. 1,25,000 for meeting the cost of a housing unit to any poor person for letting him raise his level of income and standard of living.
(b) Licensed under Section 8 of the Companies Act, 2013
(c) Not taking public deposits as described in paragraph 2(1) (xii) of Notification No. 118 /DG (SPT)-98 dated January 31, 1998.