RBI revises ‘Net Owned Fund’ requirements for specified NBFCs to commence/carry on business
- Blog|News|FEMA & Banking|
- < 1 minute
- By Taxmann
- |
- 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.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
