Non-Banking Financial Companies (NBFCs)
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What is the definition of a Non-Banking Financial Company (NBFC)?
An NBFC is a company registered under the Companies Act whose principal business is receiving deposits or lending money, or both, but which is not a bank.
What is the minimum tenor for which a deposit-taking NBFC can accept a public deposit?
12 months
Which regulatory authority supervises and regulates NBFCs in India?
The Reserve Bank of India (RBI) regulates and supervises NBFCs under the provisions of the RBI Act, 1934.
What is the maximum tenor for which a deposit-taking NBFC can accept a public deposit?
60 months
What is the key difference between a bank and an NBFC?
Unlike banks, NBFCs cannot accept demand deposits, are not part of the payment and settlement system, and do not have deposit insurance from DICGC.
Can deposit-taking NBFCs accept deposits repayable on demand?
No, demand deposits are prohibited for NBFCs
What minimum net owned fund (NOF) is required for an NBFC to be registered with the RBI?
An NBFC must have a minimum net owned fund (NOF) of Rs. 2 crore to be registered with the RBI.
What is the maximum interest rate (RBI ceiling) that a deposit-taking NBFC can offer on public deposits?
12.5% per annum
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