BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank has been given the powers under the RBI Act 1934 to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs that meet the 50-50 criteria of principal business.

Detailed explanation-2: -Though NBFCs come under the purview of the Companies Act, they are exempted from the above Rules since they come under RBI regulation under the Reserve Bank of India Act.

Detailed explanation-3: -The Department of Non-Banking Supervision (DNBS) is entrusted with the responsibility of regulation and supervision of Non-Banking Financial Companies (NBFCs) under the regulatory-provisions contained under Chapter III B and C and Chapter V of the Reserve Bank of India Act, 1934.

Detailed explanation-4: -Companies that run Collective Investment Schemes which are regulated by Securities and Exchange Board of India. Chit Fund Companies which are regulated by the respective State Governments. Nidhi Companies which are regulated by the Ministry of Corporate Affairs (MCA)