This notification, issued by the Reserve Bank of India (RBI), Department of Non-Banking Regulation, Central Office, revises the net owned fund (NOF) requirement for Non-Banking Financial Companies (NBFCs). Effective March 27, 2015, Notification No.DNBR.007 CGM CDS 2015, superseding Notification No. 132 CGM VSNM 99 dated April 20, 1999, specifies that an NBFC must have a minimum net owned fund of ₹200 lakhs to commence or continue its operations as a non-banking financial institution.
However, NBFCs holding a Certificate of Registration from the RBI with an NOF less than ₹200 lakhs are permitted to continue operations, provided they meet the following conditions:
* Achieve a net owned fund of ₹100 lakhs by April 1, 2016.
* Achieve a net owned fund of ₹200 lakhs by April 1, 2017.
The notification is issued in exercise of the powers conferred by clause (b) of sub-section (1) of section 45-IA of the Reserve Bank of India Act, 1934 (Act 2 of 1934). The notification was issued by C. D. Srinivasan, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector and monetary policy.
Reserve Bank of India Act, 1934: The legislative act that established the Reserve Bank of India and grants it powers for regulation.
Mumbai, Maharashtra: City in India where the notification was issued by the Reserve Bank of India.
Non-Banking Financial Company: A financial institution that provides banking services without holding a banking license.
Notification No. 132 CGM VSNM 99 dated April 20, 1999: Previous notification being superseded by the current notification regarding net owned funds.
April 1, 2016: Date by which Non-Banking Financial Company needs to achieve one hundred lakhs of rupees.
April 1, 2017: Date by which Non-Banking Financial Company needs to achieve two hundred lakhs of rupees.
C D Srinivasan: Chief General Manager at Reserve Bank of India.
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No. 93] NEW DELHI, FRIDAY, MARCH 11, 2016/ PHALGUNA 21, 1937
भारतीय (cid:7407)रज़व (cid:6981) बक(cid:7289)
(गैर ब(cid:7412)(cid:7289) कग िविनयमन िवभाग)
(के(cid:7008) (cid:7076)ीय कायाल(cid:6981) य)
अिधसचू ना
म(cid:7013)ु ब ई, 27 माच,(cid:6981) 2015
अिधसचू ना स.ं :गबै ि(cid:7289) विव.007/सीजीएम(सीडीएस)-2015.—भारतीय (cid:7407)रज़व (cid:6981) बक(cid:7289) अिधिनयम, 1934
(अिधिनयम 1934 का 2) क(cid:7409) धारा 45-झक क(cid:7409) उपधारा (1) के खंड (ख) (cid:7367)ारा दी गई शि(cid:7334)य(cid:7298) और इस संबंध म(cid:7286)
(cid:7079)दान क(cid:7409) गई अ(cid:7008)य सभी शि(cid:7334)य(cid:7298) का (cid:7079)योग करते (cid:7263)ए और 20 अ(cid:7079)ैल 1999 क(cid:7409) अिधसूचना स:ं 132/सीजीएम
(वीएसएनएम)-99 का अिध(cid:7059)मण करते (cid:7263)ए, गैर ब(cid:7289)(cid:7412)कग िव(cid:7275)ीय कंपनी का काय(cid:6981) (cid:7079)ारंभ करने अथवा गैर ब(cid:7289)(cid:7412)कग
िव(cid:7275)ीय सं(cid:7021)थान का कारोबार जारी रखने के िलए िनवल (cid:7021)वािधकृत िनिध के (cid:7272)प म(cid:7286) (cid:7271)पये दो सौ लाख क(cid:7409)
आव(cid:7019)यकता को इसके (cid:7367)ारा िन(cid:7416)द(cid:7397) (cid:7408)कया जाता ह।ै
ब(cid:7289)क स े जारी पंजीकरण (cid:7079)माण प(cid:7074) धारण करन े तथा (cid:7271)पये दो सौ लाख से कम िनवल (cid:7021)वािधकृत िनिध रखन े वाली
गैर ब(cid:7289)(cid:7412)कग िव(cid:7275)ीय कंपनी को गैर ब(cid:7289)(cid:7412)कग िव(cid:7275)ीय सं(cid:7021)थान का कारोबार जारी रख सकती ह ै बशत(cid:7287) (cid:7408)क ऐसी
कंपनी को -
i.(cid:32) 1 अ(cid:7079)ैल 2016 के पूव(cid:6981) (cid:7271)पये एक सौ लाख; तथा
ii.(cid:32) 1 अ(cid:7079)ैल 2017 के पूव(cid:6981) (cid:7271)पये दो सौ लाख
िनवल (cid:7021)वािधकृत िनिध (cid:7079)ा(cid:7385) करनी होगी।
सी. डी. (cid:7088)ीिनवासन, मु(cid:6990)य महा(cid:7079)बंधक
[िव(cid:6980)ा.-III/4/असा./38(388)]
1240 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
RESERVE BANK OF INDIA
(Department of Non-Banking Regulation)
(Central Office)
NOTIFICATION
Mumbai, the 27 March, 2015
Notification No.DNBR.007/ CGM (CDS) -2015.—In exercise of the powers under clause (b) of sub-
section (1) of section 45 –IA of the Reserve Bank of India Act, 1934 (Act 2 of 1934) and all the powers
enabling it in that behalf, the Reserve Bank of India, in supersession of Notification No. 132/ CGM (VSNM) -
99 dated April 20, 1999, hereby specifies two hundred lakhs rupees as the net owned fund required for a non-
banking financial company to commence or carry on the business of non-banking financial institution.
Provided that a non-banking financial company holding a certificate of registration issued by the Reserve
Bank of India and having net owned fund of less than two hundred lakhs of rupees, may continue to carry on
the business of non-banking financial institution, if such company achieves net owned fund of, -
i.(cid:32) one hundred lakhs of rupees before April 1, 2016; and
ii.(cid:32) two hundred lakhs of rupees before April 1, 2017
C D SRINIVASAN, Chief General Manager
[ADVT.III/14/Exty./38/(388)]
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and Published by the Controller of Publications, Delhi-110054.