DEPOSIT TAKING NBFCs TO HAVE MINIMUM NET OWNED FUNDS

The Reserve Bank of India, in a draft circular has said that deposit taking Non-Banking Finance Companies (NBFCs) will have to have a Net Owned Fund (NOF) of Rs. 2 crore. NBFCs, which fail to attain the revised requirement even after the two years will be automatically converted to a non-deposit taking NBFC. They will be required to repay the deposits within three years.