Master Direction for Non-Banking Financial Companies
This Master Direction outlines the guidelines for Non-Banking Financial Companies (NBFCs) accepting public deposits.
Applicability: These directions apply to all NBFCs, except those specifically exempted.
Definitions: The directions define key terms, including “remaining maturity of the instruments” and “rate of discount”.
Liquid Assets: NBFCs must maintain liquid assets, with specific requirements outlined.
Restrictions on Public Deposits: NBFCs are prohibited from accepting demand deposits and must meet minimum credit rating requirements.
Minimum Credit Rating: NBFCs must have a minimum investment grade credit rating from approved credit rating agencies.
Deposit Limitations: There are ceilings on the quantum of deposits and restrictions on the period of public deposits.
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