Master Direction – Residuary Non-Banking Companies (Reserve Bank) Directions, 2016
The Reserve Bank of India has issued directions for Residuary Non-Banking Companies, effective August 25, 2016.
Applicability: These directions apply to all Residuary Non-Banking Companies, excluding those exempted by the Reserve Bank.
Liquid Assets: Companies must maintain a minimum level of liquid assets, as specified by the Reserve Bank.
Acceptance of Deposits: Companies can accept deposits, subject to certain conditions and requirements, including the appointment of agents to collect deposits.
Branches: Companies must obtain prior approval from the Reserve Bank to open or close branches.
Prudential Norms: Companies must comply with mandatory prudential norms, including minimum rate of return and repayment of deposits.
Repayment of Deposits: Companies must intimate depositors of maturity, pay interest for delayed repayment, and maintain a minimum lock-in period.
Death of Depositor: In the event of a depositor’s death, the company must repay the deposit, subject to certain conditions.
These directions aim to regulate the activities of Residuary Non-Banking Companies and protect the interests of depositors.
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