RESERVE
BANK OF INDIA Department of Non- Banking Supervision,
Central
Office, Centre 1, Cuffe Parade, Colaba, Mumbai, 400005 | Fax:
022 2150540 Telephone 2188122 Telex
011 86135
RBI IN Telegram :
PARYAVEKSHAN |
Ref
DNBS. No. (PD) CC.8/02.01/98-99 January 21, 1999 …………………………………………… …………………………………………… …………………………………………… …………………………………………… Dear
Sir, Acceptance of public deposits for NBFCs –
Submission of statutory
return on
liquid assets and special return In
terms of section 45-IA of the reserve Bank of India Act, 1934, no Non-Banking
Financial Company can commence or carry on the business of a Non-Banking Financial
Institution without - obtaining a certificate
of registration issued under this Chapter; and
- having
the net owned fund (NOF) of twenty five lakhs rupees or such other amount, not
exceeding two hundred lakhs, as the bank may by notification in the Official Gazette,
specify.
While the NBFCs having net owned fund of
Rs.25 lakhs and above are primarily eligible for issue of certificate of registration
subject to their fulfilment of the criteria as specified in sub-section (4) of
section 45-IA, those having NOF below Rs.25 lakhs have been given a period of
3 years for attaining the minimum NOF prescribed under the Statute. This period
can be further extended by three more years at the discretion of the Reserve Bank
of India and during the interregnum, they can carry on their business till a decision
is taken on the application for registration. These companies are,
however, required to comply with all the provisions of the RBI Act, as applicable
to them and the directions issued thereunder. 2. You are
aware that the Reserve Bank of India have shifted the focus of regulation to the
NBFCs accepting / holding public deposits. They are required to maintain liquid
assets at a specified percentage of such deposits outstanding at the end of second
preceding quarter and they have to furnish a Statutory Return in the prescribed
format on quarterly basis to the Reserve Bank of India. It has come to our notice
that some of the NBFCs holding public deposits have not furnished the Return to
the RBI in fulfilment of their statutory obligation. 3.
It has been decided to give last opportunity to the companies holding public deposits
to submit this Return for determining the eligibility for the Certificate of Registration
and compliance with the regulatory framework by all the NBFCs irrespective of
whether they have been issued the certificate of registration or their applications
have been kept in abeyance. Further, some additional information is also required
for considering the extent of regulatory attention to be bestowed on the companies
holding deposits. Although Reserve Bank had earlier clarified that the companies
not holding public deposits need not submit the Return on Liquid Assets, the matter
has been reviewed in view of large scale non-compliance by the NBFCs, it has been
decided that all the NBFCs should submit the statutory return on liquid assets.
In case any company does not hold public deposits on the relevant second preceding
quarter, it should submit `Nil’ return. 4. You are, therefore,
advised to submit the following returns : - Form
of Quarterly Return I (to be submitted by RNBCs) or Form
of Quarterly Return II (to be submitted by equipment leasing or hire purchase
leasing or loan and investment company); and
- Format
of Special Return.
The formats of these Returns
are enclosed. You should use the relevant formats of the returns and submit the
same to the Regional Office of the RBI under whose jurisdiction the registered
office of your company is located for your doing the needful so as to reach them
by February 10, 1999. It may be clarified that even if you have already submitted
the return on liquid assets, the above formats are required to be completed and
submitted without fail. 5. The non submission of the above
return/information shall be viewed very seriously and penal action (including
cancellation of the Certificate of Registration, if already issued, or rejection
of the application as the case may be) will be initiated against the non-compliant
companies. Yours faithfully,
Sd/-
(D. S. Nagi)
Deputy General Manager |