Master Circular on Non-Banking Financial Companies Acceptance of Public Deposits
This circular outlines the directions for non-banking financial companies (NBFCs) regarding the acceptance of public deposits.
Part I – Preliminary deals with the short title, commencement, and definitions related to the directions.
Part II – Acceptance of Public Deposits lays down restrictions on acceptance of public deposits by mutual benefit financial companies and NBFCs.
It also specifies the Minimum Credit Rating requirement, which is an investment grade credit rating from an approved credit rating agency.
The approved credit rating agencies and their corresponding minimum investment grade ratings are listed.
Prohibition from accepting deposits is imposed on NBFCs that do not meet the minimum credit rating requirement.
Part III – Special Provisions contains additional provisions related to the acceptance of public deposits by NBFCs.
The circular is effective from January 31, 1998, and is issued by the Reserve Bank of India, Department of Non-Banking Supervision.
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