BANKING AFFAIRS

Detailed explanation-1: -That the NBFC is registered with RBI and specifically authorized by the RBI to accept deposits. A list of deposit taking NBFCs entitled to accept deposits is available at www.rbi.org.in → Sitemap → NBFC List.

Detailed explanation-2: -All the NBFCs are required to seek Registration with RBI irrespective of whether they accept public deposits or not.

Detailed explanation-3: -companies with NOF of Rs. 25 lakhs and above as well as minimum investment grade credit rating can accept public deposits not exceeding 1.5 times of NOF provided they have CRAR of 15 per cent or above with immediate effect. legislative and regulatory framework for NBFCs.

Detailed explanation-4: -Which entities can legally accept deposits from public? Banks, including co-operative banks, can accept deposits. Non-bank finance companies, which have been issued Certificate of Registration by RBI with a specific licence to accept deposits, are entitled to accept public deposit.

Detailed explanation-5: -NBFCs cannot accept deposits for a period less than 12-months and more than 60 months and the maximum interest rate that an NBFC can pay to a depositor should not exceed 12.5%.