RBI

RBI withdraws Exemptions Granted to Government Owned NBFCs

RBI withdraws Exemptions Granted to Government Owned NBFCs

RESERVE BANK OF INDIA

RBI/2017-18/181
DNBR (PD) CC.No.092/03.10.001/2017-18

May 31, 2018

All Government NBFCs
Madam/ Sir,

Withdrawal of Exemptions Granted to Government Owned NBFCs

Government owned companies, as defined under Clause (45) of Section 2 of the Companies Act, 2013 (Section 617 of the Companies Act, 1956) and registered with the Reserve Bank of India as NBFCs, are currently exempt from following regulatory and statutory provisions:

(i) Sections 45-IB and 45-IC of the RBI Act, 1934.

(ii) Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 (except provisions contained in paragraph 23 of these Directions).

(iii) Master Direction – Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 (except provisions contained in paragraph 36, 37 and 41 of these Directions).

2. On a review, it has been decided to make the NBFC regulations applicable to Government NBFCs as per the timeline indicated in the Annex to this circular. Government NBFCs that are already complying with the prudential regulation as per the road map submitted by them shall continue to follow the same.

3. Master Directions on Exemptions from the provisions of RBI Act, 1934, Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016, have been updated accordingly.

4. Necessary notification withdrawing the exemption under section 45 NC of the RBI Act, 1934 shall be issued separately.

Yours faithfully

(Manoranjan Mishra)
Chief General Manager

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