Miscellaneous Instructions to all Non-Banking Financial Companies
The Reserve Bank of India (RBI) has issued a master circular outlining various instructions for Non-Banking Financial Companies (NBFCs).
The circular covers nine key areas:
1. Nomination rules: NBFCs must comply with nomination rules under Section 45QB of the RBI Act for deposits.
2. Safe custody of liquid assets: NBFCs must ensure safe custody of liquid assets and collection of interest on SLR securities.
3. Non-reckoning of fixed deposits: Fixed deposits with banks cannot be considered as financial assets.
4. Operative instructions: Relaxations and modifications are provided for ready forward contracts, settlement of government securities transactions, and sale of securities allotted in primary issues.
5. FIMMDA reporting platform: NBFCs must use the FIMMDA reporting platform for corporate bond transactions.
6. Public notice for branch closure: NBFCs must issue a public notice before closing a branch or office.
7. Cover for public deposits: Deposit-taking NBFCs must create a floating charge on liquid assets.
8. Unsolicited commercial communications: NBFCs must comply with the National Do Not Call Registry regulations.
9. Investment through subsidiaries: NBFCs must comply with investment regulations through subsidiaries.
Chat with the Master Circular:
Download: Master Circular – Miscellaneous Instructions to all Non-Banking Financial Companies