NBFCs having asset size of less than Rs. 100 Crs. can’t commence or carry on business of non-banking services: RBI
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NOTIFICATION No. DOR.FIN.REC.95/CGM (JPS)-2022, dated 14.03.2022
The RBI has amended the Notification No. DNBS.138/CGM (VSNM)-2000 dated 13-01-2000 whereby it has specified that NBFCs having an asset size of less than Rs. 100 Crores have been prohibited from commencing or carrying on the business of non-banking services. Further, the registration of NBFCs with the RBI is not required in case NBFCs is licensed under section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013.
In addition to this, NBFCs that provides only microfinance loans as defined under the RBI (Regulatory Framework for Microfinance Loans) Directions, 2022, subject to the condition that monthly loan of a household doesn’t exceed 50% of the monthly household income and NBFCs that are not accepting public deposits as defined under the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 are also prohibited from commencing or carrying on the business of non-banking services.
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