RBI revises ‘Net Owned Fund’ requirements for specified NBFCs to commence/carry on business
- Blog|News|FEMA & Banking|
- < 1 minute
- By Chetan Kulasri
- |
- Last Updated on 5 April, 2022
Latest from Taxmann
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
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
CA | CS | CMA
