The Reserve Bank of India (RBI) has notified that the provisions of sections 45IA, 45IB, and 45IC of the Reserve Bank of India Act, 1934 (2 of 1934) shall not apply to certain Non-banking financial companies.
As per the notification, the following non-banking financial company would be exempted from the above-said provisions;
(a) providing only microfinance loans as defined under the Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022, provided the monthly loan obligations of a household do not exceed 50 percent of the monthly household income; and (b) licensed under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013; and (c) not accepting public deposits as defined under the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016; and (d) having asset size of less than ₹100 crores. Lastly, a Company is a mutual benefit company as defined in paragraph 3(x) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016.
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