Considerable points related to NBFC
NBFC is the non-banking financial Companies in which people can invest and gain the something in return. So, following are the considerable points related to NBFC:
1.NBFC is engaged in the business of loans and advances, acquisition of shares/ stocks/bonds /debentures /securities issued by the government, insurance business, chit business, and other Specified Activities.
2.NBFC must create a reserve in which minimum 20% of its net profit must be transferred before the declaration of any dividend to its members.
3.100% FDI is allowed in the NBFC sector.
4.NBFC does not accept Demand Deposits.
5.NBFC does not have a Bank license.
6.NBFC does not maintain SLR and CRR (Ratios).
7.NBFC does not Involve in Creation of Credit.
8.NBFC does not provide Overdraft Facility.
9.NBFC can be an Asset Finance Company or Loan Company or Investment Company.
10.NBFC should be incorporated under Companies Act, 2013 or any previous company law.
11. In addition, it is necessary to get approval from the RBI.
12. In few circumstances, NBFC is required to be registered under SEBI.
13.No Ombudsman can Complain Against NBFC. (Court Route is available).
14.NBFCs cannot have the Deposit Insurance Scheme.
15.NBFCs cannot offer gifts / Incentives to the depositors.
CA Amresh Vashisht
Meerut
For Updates 9837515432
