CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) has raised the minimum net owned fund (NOF) requirement of the existing Asset Reconstruction Company (ARC) to Rs 300 crore from the present Rs 100 crore by March 2026.

Detailed explanation-2: -The RBI has since stated that ARCs can act as resolution applicants if they have a minimum net owned fund of Rs1000 crore. The regulator has generally requested all ARCs to gradually increase their minimum net-owned fund to Rs200 crore by the end of March 2024 and Rs300 crore by the end of March 2026.

Detailed explanation-3: -Every Securitisation Company or Reconstruction Company seeking the Bank’s registration under Section 3 of the Act, shall have a minimum Owned Fund of Rs. 2 crore.

Detailed explanation-4: -What are the entry point norms for NBFC-Factor? Ans, Every company registered under Section 3 of the Companies Act 1956 seeking registration as NBFC-Factor shall have a minimum Net Owned Fund (NOF) of Rs. 5 crore.

Detailed explanation-5: -Procedure to Incorporate an NBFC A company should first be registered under the Companies Act 2013 or should already be registered under the Companies Act 1956 as either a Private Limited or a Public Limited Company. The minimum net owned funds of the Company should be Rs. 2 Crore.