Notification as amended upto June 30, 2012 - “Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998” - ଆରବିଆଇ - Reserve Bank of India
Notification as amended upto June 30, 2012 - “Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998”
RBI/2012-13/36 July 2, 2012 To The Chairman/CEOs of all Non-Banking Financial Companies (except Residuary Dear Sir, Notification as amended upto June 30, 2012 – “Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998” As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated Circulars / notifications. The instructions contained in the Notification No.DFC.118/DG (SPT)-98 dated January 31, 1998 updated as on June 30, 2012 are reproduced below. The updated Notification has also been placed on the RBI web-site (http://www.rbi.org.in). Yours sincerely, (C.R.Samyuktha) RESERVE BANK OF INDIA Notification No.DFC.118/DG (SPT)-98 dated January 31, 1998 The Reserve Bank of India having considered it necessary in the public interest and being satisfied that for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to give the directions set out below, hereby, in exercise of the powers conferred by sections 45J, 45K, 45L and 45MA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, and in supersession of the earlier directions contained in Notification No.DFC.114/DG(SPT)-98 dated January 2, 1998 gives to every non-banking financial company the directions hereinafter specified. Short title and commencement of the directions 1. These directions shall be known as the “Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998”.They shall come into force with effect from January 31, 1998 and any reference in these directions to the date of commencement thereof shall be deemed to be a reference to that date. 2. (1) For the purpose ofthese directions, unless the context otherwise requires, - (ia) “Asset Finance Company” means any company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive / economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines.1 (i) "depositor" means any person who has made a deposit with a company; or a (ii) Deleted2 (iii) "free reserves" means the aggregate of the balance in the share premium account, capital and debenture redemption reserves and any other reserve shown or published in the balance sheet of a company and created through an allocation of profits not beinga reservecreated forrepaymentofanyfuture liability or for depreciation in assets or for bad debts ora reserve created by revaluation of the assets of the company; (iv) Deleted3 (v) "insurance company" means any company registered under section 3 of the Insurance Act, 1938 (4 of 1938); (vi) "investment company" means any company which is a financial institution carrying on as its principal business the acquisition of securities; (vii) “lending public financial institution” means -
(viii) "loan company" means any company which is a financial institution carrying on as its principal business the providing of finance whether by making loans or advancesor otherwise for any activity other than its own but does notinclude an Asset Finance Company.4 (ix) "mutual benefit financial company" means any company which is a financial institution notified by the Central Government under section 620A of the Companies Act, 1956 (1 of 1956); 5[(ixa) “mutual benefit company” means a company not notified under section 620A of the Companies Act, 1956 (1 of 1956) and carrying on the business of a non-banking financial institution, -
(x) 'net owned fund’ means net owned fund as defined under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) including the paid up preference shares which are compulsorily convertible into equity ; (xi) “non-banking financial company” means only the non-banking institution which is a loan company or an investment company or an asset finance company6 or a mutual benefit financial company; (xii) 'public deposit’, means a deposit as defined under section 45 I(bb) of the Reserve Bank of India Act, 1934 (2 of 1934) excluding the following :
(xiii) "securities" means securities as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (xiv) “stock broking company” means a company doing the business of a stock-broker or sub-broker holding a valid certificate of registration obtained under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); and (xv) “stock exchange” means a company recognised as a stock exchange under section 4 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). (2) Words or expressions used but not defined herein and defined in the Reserve Bank of India Act, 1934 (2 of 1934) or in the Companies Act, 1956 (Act No.1 of 1956) 14[or Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 or the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987] shall have the same meaning as assigned to them in those Acts. (3) (i) If any question arises as to whether a company is a financial institution or not, such question shall be decided by the Reserve Bank of India in consultation with the Central Government and such decision shall be final and be binding on all the parties concerned. (ii) If any question arises as to whether a company which is a financial institution is a loan company or an investment company or an asset finance company15 such question shall be decided by the Reserve Bank of India, having regard to the principal business of the company and other relevant factors and such decision shall be final and be binding on all the parties concerned. NOTE : Deleted16 PART II - ACCEPTANCE OF PUBLIC DEPOSITS Restrictions on acceptance of public deposits by mutual benefit financial companies 3. (1) [deleted]17 (2) [The provisions contained in these directions shall not apply to a Mutual Benefit Financial Company or a Mutual Benefit Company; Provided that the application of Mutual Benefit Company is not rejected by Government of India under the provisions of the Companies Act, 1956 ( Act 1 of 1956).]18 Restrictions on acceptance of public deposits by non-banking financial companies 4. Minimum Credit Rating (1) On and from January 31, 1998, -
Approved Credit Rating Agencies and Minimum Investment Grade Credit Rating The names of approved credit rating agencies and the minimum credit rating shall be as follows:- Name of the agency Minimum investment
Prohibition from accepting demand deposit (2) On and from January 31, 1998, no non-banking financial company shall accept or renew any public deposit whether accepted before or after January 31, 1998, which is repayable on demand. Period of Public Deposit (3) On and from January 31, 1998, no non-banking financial company shall accept or renew any public deposit whether accepted before or after January 31, 1998 unless such deposit is repayable after a period of twelve months but not later than sixty months from the date of acceptance or renewal thereof. (4) Ceiling on quantum of deposit Asset Finance Company (AFC) 24 No asset finance company25 or loan company or investment company shall, accept or renew public deposit except as provided hereunder -* AFC26 (a) An asset finance company27 -
may, accept or renew public deposit, together with the amounts remaining outstanding in the books of the company as on the date of acceptance or renewal of such deposit, not exceeding one and one-half times of its NOF or public deposit up to ten crore of rupees, whichever is lower. (b) An asset finance company28 ,
may, accept or renew public deposit, together with the amounts remaining outstanding in the books of the company as on the date of acceptance or renewal of such deposit, not exceeding four times of its NOF. LC/IC (c) A loan company or an investment company, –
Provided that a loan company or an investment company which is complying with all the above conditions and having, as on the date of its coming into force of these directions, AAA (triple A) grade credit rating but not having capital adequacy ratio of fifteen percent may, so long it continues to maintain the same position of its credit rating, accept or renew public deposit only up to the extent of not exceeding the amount outstanding as at the close of business on December 18, 1998 or one and one-half time of its NOF, whichever is more, and shall bring down its public deposit to the level as specified in paragraph 4(6) of the directions and also attain the capital adequacy ratio of fifteen percent before March 31, 2000. (d) A loan company or an investment company which complies with all the prudential norms and having, as on the date of coming into force of these directions –
(e) A loan company or an investment company which complies with all the prudential norms and having, as on the date of coming into force of these directions –
(as per audited balance-sheet) with other stipulations remaining the same. (5) In the event of downgrading of credit rating below the minimum specified investment grade as provided for in paragraph 4(4), a non-banking financial company shall regularise the excess deposit as provided hereunder : AFC29 (i) An asset finance company30 shall, -
LC/IC (ii) A loan company or an investment company shall,
Regularisation of the public deposits accepted earlier and held in excess of the permissible extent (6) Where an asset finance company31 or a loan company or an investment company holds, at the close of business on December 18, 1998 public deposit in excess of the appropriate extent to which it is entitled to accept under the above provisions of these directions, it shall, -
Note : In the event of excess public deposits arising out of the regulatory ceiling or downgrading of credit rating, the NBFC may renew the maturing public deposit subject to the compliance of the repayment stipulations contained in sub-paragraphs (5) and (6) of paragraph 4 and other provisions of these directions. It is to clarify that no matured public deposit shall be renewed without the express and voluntary consent of the depositor. Ceiling on the rate of interest 32[((7) On and from April 24, 2007, no non-banking financial company shall invite or accept or renew public deposit at a rate of interest exceeding twelve and half per cent per annum. Interest may be paid or compounded at rests which shall not be shorter than monthly rests.] 33[(7A) On and from September 18, 2003, no non-banking financial company shall invite or accept or renew repatriable deposits from Non-Resident Indians in terms of Notification No.FEMA.5/2000-RB dated May 3, 2000 under Non-Resident (External) Account Scheme at a rate exceeding the rate specified by the Reserve Bank of India for such deposits with scheduled commercial banks. Explanation The period of above deposits shall be not less than one year and not more than three years.] (8) On and from January 31, 1998 no non-banking financial company shall pay to any broker on public deposit collected by or through him, -
34[Intimation of maturity of deposits to depositors (8A) It shall be the obligation of the non-banking financial company to intimate the details of maturity of the deposit to the depositor at least two months before the date of maturity of the deposit.” ] (9) Where a non-banking financial company permits an existing depositor to renew the deposit before maturity for availing of the benefit of higher rate of interest, such company shall pay the depositor the increase in the rate of interest provided that, - (i) the deposit is renewed in accordance with the other provisions of these directions and for a period longer than the remaining period of the original contract; and (ii) the interest on the expired period of the deposit is reduced by one percentage point from the rate which the company would have ordinarily paid, had the deposit been accepted for the period for which such deposit had run; any interest paid earlier in excess of such reduced rate is recovered/adjusted. Payment of interest on overdue public deposits (10) A non-banking financial company may, at its discretion, allow interest on an overdue public deposit or a portion of the said overdue deposit from the date of maturity of the deposit subject to the conditions that: (i) the total amount of overdue deposit or the part thereof is renewed in accordance with other relevant provisions of these directions, from the date of its maturity till some future date; and (ii) the interest allowed shall be at the appropriate rate operative on the date of maturity of such overdue deposit which shall be payable only on the amount of deposit so renewed : Provided that where a non-banking financial company fails to repay the deposit along with interest on maturity on the claim made by the depositor, the non-banking financial company shall be liable to pay interest from the date of claim till the date of repayment at the rate as applicable to the deposit. (11) Where so desired, deposits may be accepted in joint names with or without any of the clauses, namely, "Either or Survivor", "Number One or Survivor/s", "Anyone or Survivor/s". Particulars to be specified in application form soliciting public deposits (12) (i) On and from January 31, 1998, no non-banking financial company shall accept or renew any public deposit except on a written application from the depositor in the form to be supplied by the company, which form shall contain all the particulars specified in the Non-Banking Financial Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977, made under section 58A of the Companies Act, 1956 (1 of 1956) and also contain the specific category of the depositor, i.e. whether the depositor is a shareholder or a director or a promoter of the company or a member of public. (ii) The application form should also contain the following :- (a) the credit rating assigned for its fixed deposit and the name of the credit rating agency which rated the company or a statement from the management if it is an asset finance company35 that, the quantum of public deposit held by it is not exceeding one and one-half times of its NOF or not exceeding rupees ten crore whichever is less; (b) in case of non-repayment of the deposit or part thereof as per the terms and conditions of such deposit, the depositor may approach the Eastern/Western/ Northern/Southern (delete which are inapplicable) Bench of Company Law Board whose full address is given hereunder; Give here the full address of the Bench of the Company Law Board under whose jurisdiction the registered office of the company is located; (c) in case of any deficiency of the company in servicing its deposit, the depositor may approach the National Consumers Disputes Redressal Forum, the State Level Consumers Disputes Redressal Forum or the District Level Consumers Disputes Redressal Forum for relief; (d) a statement that the financial position of the company as disclosed and the representations made in the application form are true and correct and that the company and its Board of Directors are responsible for the correctness and veracity thereof; (e) the financial activities of the company are regulated by the Reserve Bank of India. It must, however, be distinctly understood that Reserve Bank of India does not undertake any responsibility for the financial soundness of the company or for the correctness of any of the statements or the representations made or opinions expressed by the company; and for repayment of deposit/discharge of liabilities by the company; (f) at the end of application form but before the signature of the depositor, the following verification clause by the depositor should be appended: “I have gone through the financials and other statements / particulars / representations furnished / made by the company and after careful consideration I am making the deposit with the company at my own risk and volition”. 36[(g) the information relating to and the aggregate dues from the facilities, both fund and non-fund based, extended to, and the aggregate dues from companies in the same group or other entities or business ventures in which the directors and / or the non-banking financial company are holding substantial interest and the total amount of exposure to such entities.] 37[(iii) Every non-banking financial company shall obtain proper introduction of the new depositors before opening their accounts and accepting the deposits and keep on its record the evidence which it has relied upon for the purpose of such introduction.] Advertisement and statement in lieu of advertisement: (13) (i) Every non-banking financial company soliciting public deposit shall comply with the provisions of the Non-Banking Financial Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 and shall also specify in every advertisement to be issued thereunder, the following :-
As regards deposit taking activity of the company, the viewers may refer to the advertisement in the newspaper/information furnished in the application form for soliciting public deposits; The company is having a valid Certificate of Registration dated _______ issued by the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. However, the Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.] (ii) Where a non-banking financial company intends to accept public deposit without inviting or allowing or causing any other person to invite such deposit, it shall, before accepting such deposit, deliver to the Reserve Bank of India for record, a statement in lieu of advertisement containing all the particulars required to be included in the advertisement pursuant to the Non-Banking Financial Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 as also the particulars stated in clause (i) hereinabove, duly signed in the manner provided in the aforesaid Rules. (iii) A statement delivered under clause (ii) above shall be valid till the expiry of six months from the date of closure of the financial year in which it is so delivered or until the date on which the balance sheet is laid before the company in general meeting or where the annual general meeting for any year has not been held, the latest day on which that meeting should have been held in accordance with the provisions of the Companies Act, 1956 (1 of 1956), whichever is earlier, and a fresh statement shall be delivered after the expiry of the validity of the statement, in each succeeding financial year before accepting public deposit in that financial year. General provisions regarding repayment of public deposit 41[On and from October 5, 2004 Minimum lock- in period and Repayment in the event of death of the depositor (14) (i) No non-banking financial company shall grant any loan against a public deposit or make premature repayment of a public deposit within a period of three months (lock-in period) from the date of its acceptance: Provided that in the event of death of a depositor, a non-banking financial company may repay the public deposit prematurely, even within the lock – in period, to the surviving depositor/s in the case of joint holding with survivor clause, or to the nominee or the legal heir/s of the deceased depositor, on the request of the surviving depositor/s/nominee/legal heir, and only against submission of proof of death, to the satisfaction of the company. Repayment of public deposits by a non-banking financial company not being a problem non-banking financial company (ii) Subject to the provisions contained in sub-paragraph (i), a non-banking financial company not being a problem Non-Banking Financial Company may,
Repayment of public deposits by a problem non-banking financial company (iii) Subject to the provisions contained in sub-paragraph (i), in order to enable a depositor to meet expenses of an emergent nature, a problem non-banking financial company may make premature repayment of, or grant a loan against, a public deposit in the following cases only, namely:
42[Clubbing of deposits by a problem non-banking financial company (iv) All deposit accounts standing to the credit of sole/first named depositor in the same capacity shall be clubbed and treated as one deposit account for the purpose of premature repayment or grant of loan by a problem non-banking financial company; Provided that this clause shall not apply to premature repayment in the event of death of depositor as provided in sub-paragraph (i).] Rate of interest on premature repayment of public deposits (v) Where a non-banking financial company, whether at its sole discretion or at the request of the depositor, as the case may be, repays a public deposit after three months from the date of its acceptance, but before its maturity (including premature repayment in the case of death of the depositor), it shall pay interest at the following rates:
Explanation: For the purpose of this paragraph, (a) 'problem non-banking financial company’ means a non-banking financial company which - (i) has refused or failed to meet within five working days any lawful demand for repayment of the matured public deposits ; or (ii) intimates the CLB under section 58AA of the Companies Act, 1956, about its default to a small depositor in repayment of any public deposit or part thereof or any interest thereupon; or (iii) approaches the Bank for withdrawal of the liquid asset securities to meet its deposit obligations; or (iv) approaches the Bank for any relief or relaxation or exemption from the provisions of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998 or from that of Prudential Norms for avoiding default in meeting public deposit or other obligations; or (v) has been identified by the Bank to be a problem non-banking financial company either suo moto or based on the complaints from the depositors about non-repayment of public deposits or on complaints from the company’s lenders about non-payment of dues. (b) ‘tiny deposit’ means the aggregate amount of public deposits not exceeding Rs. 10,000/- standing in the name of the sole or the first named depositor in the same capacity in all the branches of the non-banking financial company.”] Furnishing of receipt to depositor 15) (i) Every non-banking financial company shall furnish to every depositor or his agent or group of joint depositors, a receipt for every amount received by the company by way of deposit. (ii) The said receipt shall be duly signed by an officer authorised by the company in that behalf and shall state the date of deposit, the name of the depositor, the amount in words and figures received by the company by way of deposit, rate of interest payable thereon and the date on which the deposit is repayable : Provided that, if such receipts pertain to instalments subsequent to the first instalment of a recurring deposit it may contain only name of the depositor and date and amount of deposit. (16) (i) Every non-banking financial company shall keep one or more registers in respect of all deposits in which shall be entered separately in the case of each depositor the following particulars, namely - (a) name and address of the depositor, (b) date and amount of each deposit, (c) duration and the due date of each deposit, (d) date and amount of accrued interest or premium on each deposit, (e) date of claim made by the depositor, (f) date and amount of each repayment, whether of principal, interest or premium, (g) the reasons for delay in repayment beyond five working days and (ii) The register or registers aforesaid shall be kept at each branch in respect of the deposit accounts opened by that branch of the company and a consolidated register for all the branches taken together at the registered office of the company and shall be preserved in good order for a period of not less than eight calendar years following the financial year in which the latest entry is made of the repayment or renewal of any deposit of which particulars are contained in the register: Provided that, if the company keeps the books of account referred to in sub-section (1) of section 209 of the Companies Act, 1956 (1 of 1956) at any place other than its registered office in accordance with the proviso to that sub-section, it shall be deemed to be sufficient compliance with this clause if the register aforesaid is kept at such other place, subject to the condition that the company delivers to the Reserve Bank of India a copy of the notice filed with the Registrar of Companies under the proviso to the said sub-section within seven days of such filing. 43[4A. Branches and appointment of agents to collect deposits On and from January 13, 2000, no non-banking financial company shall open its branch or appoint agents to collect deposits except as provided hereunder : (i) a non-banking financial company having the certificate of registration issued under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) and otherwise entitled to accept publicdeposits as per paragraph 4(4) of these Directions, may open its branch or appoint agents if its (a) NOF is up to Rs. 50 crore Within the State where (b) NOF is more than Rs. 50 crore and Anywhere in India (ii) (a) for the purpose of opening a branch, a non-banking financial company shall notify to the Reserve Bank of its intention to open the proposed branch; (b) on receipt of such advice, the Reserve Bank may, on being satisfied that in the public interest or in the interest of the concerned non-banking financial company or for any other relevant reasons to be recorded, reject the proposal and communicate the same to the non-banking financial company; (c) if no advice of rejection of the proposal under (b) above is communicated by the Reserve Bank within 30 days from the receipt of such advice, the non-banking financial company may proceed with its proposal. 4B Closure of branches Information to be included in the Board's report 5. (1) In every report of the Board of Directors laid before the company in a general meeting under sub-section (1) of section 217 of the Companies Act, 1956 (1 of 1956), there shall be included in the case of a non-banking financial company, the following particulars or information, namely :-
(2) The said particulars or information shall be furnished with reference to the position as on the last day of the financial year to which the report relates and if the amounts remaining unclaimed or undisbursed as referred to in clause (ii) of the preceding sub-paragraph exceed in the aggregate a sum of rupees five lakhs, there shall also be included in the report a statement on the steps taken or proposed to be taken by the Board of Directors for the repayment of the amounts due to the depositors remaining unclaimed or undisbursed. Safe custody of approved securities 44[6.(1) every non-banking financial company shall -
and intimate the name and address of such scheduled commercial bank where it has opened its CSGL account or has held the securities in physical form, or the location of the SHCIL where it has opened its CSGL account or has held the securities in physical form or the depository (and the depository participant) where it has held its dematerialised account, in writing, to the Regional Office of the Reserve Bank of India under whose jurisdiction the registered office of the company is situated, as specified in Second Schedule hereto: Provided that where a non-banking financial company intends to entrust the securities specified in clause (ii) above with the designated banker or SHCIL, at a place other than the place at which its registered office is located, it may do so with the prior approval, in writing, of the Regional Office of the Reserve Bank of India under whose jurisdiction the registered office of the company is situated, as specified in Second Schedule hereto:] 45[Provided further that the government securities held in the said CSGL account or dematerialised account, shall not be traded, either by entering into ready forward contracts, including reverse ready forward contracts, or otherwise, except, by following the procedure and to the extent, as hereinafter specified.] 46[(2) The securities mentioned in sub-paragraph (1) above shall continue to be kept as specified therein for the benefit of the depositors and shall not be withdrawn or encashed or otherwise dealt with by the non-banking financial company except for repayment to the depositors with the prior approval of Reserve Bank of India : Provided that,
48[(3) Where the non-banking financial company intends to trade, either by entering into ready forward contracts, including reverse ready forward contracts, or otherwise, in the government securities that are held in excess of the requirement under Section 45-IB of the Act and Notification No. DFC. 121/ED (G)-98 dated January 31, 1998, the same may be undertaken by opening a separate CSGL or dematerialised account for keeping such excess government securities.] 7. A non-banking financial company receiving any amount in the ordinary course of its business as security deposit from any of its employees for due performance of his duties shall keep such amount in an account with a scheduled commercial bank or in a post office in the joint names of the employee and the company on the conditions that -
Copies of balance sheet and accounts together with the Directors' report, auditors’ report, notes on accounts and returns to be furnished to the Reserve Bank 8. (1) Every non-banking financial company accepting/holding public deposit shall deliver to the Reserve Bank of India an audited balance sheet as on the last date of each financial year and an audited profit and loss account in respect of that year as passed by the company in general meeting together with a copy of the report of the Board of Directors laid before the company in such meeting in terms of section 217(1) of the Companies Act, 1956 (1 of 1956) within fifteen days of such meeting as also a copy of the report and the notes on accounts furnished by its Auditor. Provision for submitting Auditor's Certificate (2) Every non-banking financial company holding/accepting public deposits shall furnish to the Reserve Bank of India along with a copy of the audited balance sheet as provided in sub-paragraph (1) above, a copy of the Auditor’s report to the Board of Directors and a certificate from its auditor, to the effect that the full amount of liabilities to the depositors of the company, including interest payable thereon, are properly reflected in the balance sheet, and that the company is in a position to meet the amount of such liabilities to the depositors. Returns to be submitted to the Reserve Bank of India (3) Every non-banking financial company holding/accepting public deposits shall submit to the Reserve Bank of India a return furnishing the information specified in the First Schedule hereto, with reference to its financial position as on the date specified in the said Schedule. 49“provided that with effect from June 30, 2011 such return shall be submitted quarterly online in the format available on https://cosmos.rbi.org.in, within a period of 15 days from the close of the quarter.” (4) Every non-banking financial company shall, not later than one month from the occurrence of any change in the following matters, shall intimate to the Reserve Bank of India: (i) the complete postal address, telephone number/s and fax number/s of the registered/corporate office; (iv) the specimen signatures of the officers authorised to sign on behalf of the company; and (v) the names and office address of the auditors of the company. Balance sheet, returns, etc. to be submitted to the Department of Non-Banking Supervision (5) Any balance sheets, returns or information or intimation or statement required to be submitted or furnished to the Reserve Bank of India in pursuance of these directions shall be submitted or furnished to the Regional Office of the Department of Non-Banking Supervision of the Reserve Bank of India within whose jurisdiction the registered office of the company is situated, as specified in the Second Schedule hereto. Non-applicability of the Directions to certain types of non-banking financial companies 9. Nothing contained in paragraphs 4 to 8 of these directions shall be applicable to: (1) an insurance company holding a valid certificate of registration issued under section 3 of the Insurance Act, 1938 (IV of 1938), or a stock exchange notified under section 4 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), or a stock broking company defined in section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (2) a loan company, an investment company, an asset finance company50 not accepting/holding any public deposit: Provided that the company passes in the meeting of its board of directors within thirty days of the issue of these directions and thereafter within thirty days of the commencement of the next financial year and each subsequent financial year, a resolution to the effect that the company has neither accepted public deposit nor would accept any public deposit during the year. (3) an investment company,
51[9A Nothing contained in paragraphs 4 to 7 shall apply to an NBFC being a Government company as defined under section 617 of the Companies Act, 1956 (1 of 1956). ] 10. The Reserve Bank of India may, if it considers necessary for avoiding any hardship or for any other just and sufficient reason, grant extension of time to comply with or exempt any company or class of companies from all or any of the provisions of these directions either generally or for any specified period subject to such conditions as the Reserve Bank of India may impose. Saving of action taken or that may be taken for contravention of the Non-Banking Financial Companies (Reserve Bank) Directions, 1998 11. It is hereby clarified that the supersession of the Non-Banking Financial Companies (Reserve Bank) Directions, 1998 contained in Notification No.DFC.114/DG (SPT)-98 dated January 2, 1998 shall not in any way affect -
Applicability of the directions to companies other than those mentioned in paragraph 2(1) 12. The provisions of these directions, as in force for the time being, shall apply to or in relation to every company which is a financial institution but does not belong to any of the categories of the companies mentioned in sub- paragraph (1) of paragraph 2 of these directions or is not a miscellaneous non-banking company within the meaning of the Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 1977 or is not a residuary non-banking company within the meaning of Residuary Non-Banking Companies (Reserve Bank) Directions, 1987 as they apply to or in relation to a loan company. (S.P. TALWAR) ( Please see paragraph 6(1) of the Directions ) RESERVE BANK OF INDIA Name and address of the Office Area under jurisdiction 1. Ahmedabad Regional Office, State of Gujarat and Union 3. Bhopal Regional Office, 52[States of Madhya Pradesh and 4. Bhubaneswar Regional Office State of Orissa. 5. 53[Kolkata] Regional Office, States of Sikkim, and West 6. Chandigarh Regional Office, States of Himachal Pradesh, 7. Chennai Regional Office, State of Tamil Nadu and Union 9. Hyderabad Regional Office, State of Andhra Pradesh. 10. Jaipur Regional Office, State of Rajasthan. 11. Jammu Regional Office, State of Jammu and Kashmir. 55[12.Kanpur Regional Office 29[States of Uttar Pradesh and 13. Mumbai Regional Office, States of Goa and Maharashtra 14. New Delhi Regional office, State of Haryana and 15. Patna Regional Office, 29 [States of Bihar and Jharkhand] 16. Thiruvananthapuram State of Kerala and Union 1Inserted vide Notification No. 189 dated December 06, 2006 2Deleted vide Notification No. 189 dated December 06, 2006 3Deleted vide Notification No. 189 dated December 06, 2006 4Substituted vide Notification No.189 dated December 06, 2006 5Inserted, vide Notification No.134 dated January 13, 2000 6Substituted vide Notification No.189 dated December 06, 2006 7Inserted vide Notification No.134 dated January 13, 2000 8Inserted , vide Notification No.133 dated November 15, 1999 9Inserted , vide Notification No.134 dated January 13, 2000 and renumbered as (i) vide Notification No.141 dated June 30, 2000 10Inserted , vide Notification No.141 dated June 30, 2000 11Inserted , vide Notification No.148 dated June 27, 2001 12Inserted , vide Notification No.203 dated October 29, 2008 13Inserted vide Notification No DNBS (PD) CC.No.203/03.10.001/2010-2011 dated October 22, 2010 14Inserted , vide Notification No.127 dated December 18, 1998 15Substituted vide Notification No.189 dated December 06, 2006 16Deleted vide Notification No.189 dated December 06, 2006 17Deleted, vide Notification No.197 dated November 22, 2007 18Substituted, vide Notification No.197 dated November 22, 2007 19Inserted , vide Notification No.134 dated January 13, 2000 20Substituted vide, Notification No.189 dated December 06, 2006 21Substituted vide, Notification No.148 dated June 27, 2001 22Substituted vide, Notification No.159 dated October 1, 2002 23Inserted vide Notification No. DNBS.(PD)243 / CGM(US)-2012 dated May 11 , 2012 24Substituted vide, Notification No.189 dated December 06, 2006 25Substituted vide, Notification No.189 dated December 06, 2006* To ensure a measured movement towards strengthening the financials of all deposit taking NBFCs by increasing their NOF to a minimum of Rs.200 lakh in a gradual, non-disruptive and non-discriminatory manner, vide Notification DNBS No.199 –CGM(PK)-2008 it was prescribed that: (a) As a first step, NBFCs having minimum NOF of less than Rs. 200 lakh may freeze their deposits at the level currently held by them. (b) Further, Asset Finance Companies (AFC) having minimum investment grade credit rating and CRAR of 12% may bring down public deposits to a level that is 1.5 times their NOF while all other companies may bring down their public deposits to a level equal to their NOF by March 31, 2009.. (c) Those companies which are presently eligible to accept public deposits upto a certain level, but have, for any reason, not accepted deposits upto that level will be permitted to accept public deposits upto the revised ceiling prescribed above. d) Companies on attaining the NOF of Rs.200 lakh may submit statutory auditor's certificate certifying its NOF. (e) The NBFCs failing to achieve the prescribed ceiling within the stipulated time period, may apply to the Reserve Bank for appropriate dispensation in this regard which may be considered on case to case basis. 26Substituted vide, Notification No.189 dated December 06, 2006 27 Substituted vide, Notification No.189 dated December 06, 2006 28 Substituted vide, Notification No.189 dated December 06, 2006 29Substituted vide, Notification No.189 dated December 06, 2006 30 Substituted vide, Notification No.189 dated December 06, 2006 31Substituted vide, Notification No.189 dated December 06, 2006 32 Substituted, vide Notification No.195 dated April 24, 2007 33 Inserted, vide Notification No.174 dated September 17, 2003 34 Inserted , vide Notification No. 179 dated October 5, 2004 35 Substituted vide, Notification No.189 dated December 06, 2006 36Inserted, vide Notification No.134 dated January 13, 2000 37Inserted, vide Notification No.134 dated January 13, 2000 38Inserted, vide Notification No.127 dated December 18, 1998 39Inserted, vide Notification No.159 dated October 1, 2002 40Inserted, vide Notification No.194 dated April 4, 2007 41Substituted, vide Notification No.179 dated October 5, 2004 42Inserted vide Notification No. DNBS. 182/CGM (PK) - 2005 dated December 9, 2005 43Inserted , vide Notification No.134 dated January 13, 2000 44Substituted , vide Notification No.159 dated October 1, 2002 45Inserted, vide Notification No.170 dated July 31, 2003 46Substituted, vide Notification No.159 dated October 1, 2002 47Clause (iii) deleted and clause (iv) renumbered, vide Notification No. 170 dated July 31, 2003 48Inserted, vide Notification No.170 dated December July 31, 2003 49Inserted vide NOTIFICATION NO. DNBS.230 / CGM (US)-2011 Dated September 22, 2011 50Substituted vide Notification No.189 dated December 06, 2006 51Inserted vide, Notification No. 134 dated January 13, 2000 52Substituted, vide Notification No. 148 dated June 27, 2001 53Substituted, vide Notification No. 148 dated June 27, 2001 54Substituted, vide Notification No. 148 dated June 27, 2001 55Substituted, vide Notification No. 148 dated June 27, 2001 |