Indian Economy

General Studies (CGL)

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According to the RBI directions, an NBFC (Non- Banking Finance Company) must possess a Net-owned Fund of the amount:

minimum Rs. 5lakh

minimum Rs 1 Crore

minimum Rs 10 crore

minimum Rs 2 Crore

Explanation:

For all Companies currently applying for registration as a NBFC, the minimum Net Owned Funds requirement is INR 10 Crore (Previously it was INR 2 Crore) (Minimum NOF amount may be higher depending on specific type of NBFC).

RBI has prescribed a timeline to meet the minimum Net Owned Funds amount of INR 10 Crore in a phased manner for existing NBFCs.
It is to be noted that obtaining registration is independent of having minimum Net Owned Funds amount – conduct of Principal Business of NBFC is a violation of Section 45-IA even if the Company’s Net Owned Funds amount is less than INR 10 Crore (Previously INR 2 Crore).

Hence option 3rd is correct.

By: Parvesh Mehta

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