Section 45-IA, 45K and 45L of the RBI Act –Deposit Taking NBFC- Grant of Certificate of Registration – Requirement of minimum Net Owned Fund of Rs. 200 lakh for all deposit taking NBFCs

To

All deposit taking NBFCs

 

RBI/2007-08/369 DNBS (PD) C.C. No. 114 /03. 02.059/2007-08, 17th June 2008

(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.(As per Annex).

(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.