RBI revises ‘Net Owned Fund’ requirements for specified NBFCs to commence/carry on business

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Net Owned Fund requirements; RBI News;

NOTIFICATION NO. DOR.CRE.060.CGM 2022, Dated 17.03.2022

The Reserve Bank of India has specified Rs. 10 crores as net owned fund (NOF) required for the following categories of non-banking financial companies to commence or carry on the business of non-banking financial institutions from October 01, 2022:

1. Non-banking financial company –Investment and Credit Company (NBFC-ICC)

2. Non-banking financial company –Micro Finance Institution (NBFC-MFI)

3. Non-banking financial company –Factor (NBFC-Factor)

However, it is to be noted that the above categories of existing NBFCs holding a certificate of registration as on October 22, 2021, issued by the RBI and having a net owned fund of less than Rs. 10 crores shall have NOF of ?10 crores as per the following glide path:

(a) NBFC-ICC to have NOF of Rs. 5 Crores by Mar 31, 2025, and Rs. 10 Crores by Mar 31, 2027

(b) NBFC-MFI to have NOF of Rs. 7 Crores by Mar 31, 2025, and Rs. 10 Crores by Mar 31, 2027

(c) NBFC-MFI in North East Region of Country to have NOF of Rs. 5 Crores by Mar 31, 2025, and Rs. 10 Crores by Mar 31, 2027

(d) NBFC-Factor to have NOF of Rs. 5 Crores by Mar 31, 2025, and Rs. 10 Crores by Mar 31, 2027

Click Here To Read The Full Notification

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