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Re-classification of NBFCs

RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.

Notification No. DNBS. 190 / CGM(PK)-2006

December 06, 2006

The Reserve Bank of India, having satisfied that, in the public interest, and to enable the Bank to regulate the financial system of the country to its advantage, it is necessary to amend the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998, in exercise of the powers conferred by section 45JA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby directs that the said directions contained in Notification No.DFC.119/DG(SPT)-98 dated January 31, 1998 shall stand amended with immediate effect as follows, namely -

1. In sub-clause (c) of clause (ii) of paragraph 1(3), for the words "a hire purchase finance company", the words "Asset Finance Company" shall be substituted.

2. Sub-clause (d) of clause (ii) of paragraph 1(3) shall be deleted.

3. In paragraph 9D, after the words 'every year', the following words shall be added:

"Such certificate shall also indicate the asset/income pattern of the NBFC for making it eligible for classification as Asset Finance Company, Investment Company or Loan Company."

4. In paragraph 11B(i) , for the words "equipment leasing company or a hire purchase finance company", the words "Asset Finance Company" shall be substituted.

5. In the third proviso of paragraph 11(B), for the words "equipment leasing company or a hire purchase finance company", the words "Asset Finance Company" shall be substituted.

6. In item (ii) (a) of part I of the format (NBS-2) of the half yearly return, referred to in paragraph 13 of the Directions, for the words "equipment leasing and hire purchase finance companies", the words "Asset Finance Companies" shall be substituted.

(P. Krishnamurthy)
Chief General Manager In-Charge


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