NBFC licence

NBFC licence

MUMBAI, FEBRUARY 9: The Reserve Bank of India (RBI) on Wednesday clarified that it was mandatory for all non-banking finance companies (NBFCs) and residuary non-banking companies (RNBCs) to obtain a certificate of registration from the central bank before commencing business operations.

The RBI statement said all NBFCs including RNBCs whose net owned funds (NOF) was below Rs 25 lakh should immediately intimate it in case they have attained the minimum NOF as on January 9 so that their application for issue of certificate of registration can be considered.

"All other NBFCs, which have failed to attain the minimum NOF as on January 9 should not accept public deposits or renew such maturing deposits in any manner," the statement said, adding:"The companies which have not requested the RBI for extension of time to reach the minimum NOF should immediately stop doing NBFI business".