The Reserve Bank of India (RBI) has specified ten crore rupees as net owned fund (NOF) required for the following categories of nonbanking financial companies to commence or carry on the business of non-banking financial institutions from October 01, 2022, (a) Non-banking financial company – Investment and Credit Company (NBFC-ICC) (b) Non-banking financial company – Micro Finance Institution (NBFC-MFI) (c) Non-banking financial company – Factor (NBFC-Factor).
The Notification provided that the above categories of existing non-banking financial companies holding a certificate of registration as of October 22, 2021, issued by the Reserve Bank of India and having a net owned fund of less than ten crore rupees, shall achieve the NOF of ₹10 crores as per the glide path prescribed in the notification.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
Notification No. DOR.CRE.060.CGM(MM) 2022
Date of Notification: March 17,2022
