The Reserve Bank of India (RBI) on May 02, 2022 has issued a notification to revise Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 under sections 45JA, 45K, 45L and 45M of the Reserve Bank of India Act, 1934 section 6 of the Factoring Regulation Act, 2011.
The applicability is as followed:
(1) The provisions of these Directions shall apply to the following:
(i) every Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI) registered with the Bank under the provisions of Reserve Bank of India Act, 1934 (RBI Act, 1934);
(ii) every Deposit taking Non-Banking Financial Company (NBFC-D) registered with the Bank under the provisions of RBI Act, 1934;
(iii) every Non-Banking Financial Company – Factor registered with the Bank under
section 3 of the Factoring Regulation Act, 2011 and having an asset size of ₹500 crore and above and every Non-Banking Financial Company - Investment and Credit Company registered with the bank under Section 3 of the Factoring Regulation Act, 2011;
(iv) every Infrastructure Debt Fund – Non-Banking Finance Company (IDF-NBFC) registered with the Bank under the provisions of RBI Act, 1934;
(v) every Non-Banking Finance Company – Micro Finance Institution (NBFC-MFI) registered with the Bank under the provisions of RBI Act, 1934 and having an asset size of ₹500 crore and above;
(vi) every Non-Banking Finance Company - Infrastructure Finance Company (NBFC- IFC) registered with the Bank under the provisions of RBI Act, 1934 and having an asset size of ₹500 crore and above.
(2) The Category of NBFCs as mentioned at points (i) to (vi) above are hereafter referred to as ‘applicable NBFCs’, for the purpose of these Directions. Specific directions applicable to specific categories of NBFCs registered as NBFC-Factors and NBFC-ICCs registered under Factoring Regulation Act, 2011, IDF-NBFCs and NBFC-MFIs are as provided for under respective Chapters in these Directions.
(3) These Directions shall apply to a non-banking financial company being a Government company as defined under clause (45) of Section 2 of the Companies Act, 2013 (Act 18 of 2013). The directions relating to prudential regulation, acceptance of public deposits, corporate governance, conduct of business regulations and statutory provisions etc., shall, however, be followed by the government companies as per the timeline provided in Annex I. Government NBFCs that are already complying with the prudential regulation as per the road map submitted by them shall continue to follow the same.1
(4) These Directions consolidate the regulations as issued by Department of Regulation, Reserve Bank of India. However, any other Directions/ guidelines issued by any other Department of the Bank, as applicable to an applicable NBFC shall be adhered to by it.
*Disclaimer - Since this Master Direction has been significantly amended, it has been replaced rather than showing the changes in track mode for reader convenience. The changes are listed at the end of Master Direction in any case.
[Notification RBI/DNBR/2016-17/45 Master Direction DNBR.PD.008/03.10.119/2016-17]
