Monday, January 15, 2007

AFCs reclassified

The Reserve Bank of India (RBI) has reclassified Asset Financing Company (AFC) as an entity whose principal business is financing of physical assets supporting productive activities. Principal business for this purpose is defined as aggregate of financing real or physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively. The remaining companies will continue to be classified as loan or investment companies.


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