FAQ Page 1 - RBI - Reserve Bank of India
All you wanted to know about NBFCs
G. Money Circulation/Multi-Level Marketing (MLM)/ Ponzi Schemes/ Unincorporated Bodies (UIBs)
The NBFC/s being amalgamated will require to obtain prior written approval of the Reserve Bank.
Yes, prior approval of the Reserve Bank would have to be obtained before approaching any Court or Tribunal seeking orders for merger/ amalgamation in all such cases which would ordinarily fall under the scenarios explained in FAQs 84, 85 or 86.
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* NBFC is a financial Institution that is into Lending or Investment or collecting monies under any scheme or arrangement but does not include any institutions which carry on its principal business as agriculture activity, industrial activity, trading and purchase or sale of immovable properties. A company that carries on the business of accepting deposits as its principal business is also a NBFC.
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Related Press Release | |
May 31, 2013 | Check before Depositing Money with Financial Entities: RBI Advisory |
Page Last Updated on: December 10, 2022
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