Exemptions from the provisions of the RBI Act, 1934

Micro Finance institutions

Section 45-IA, 45-IB and 45-IC of the Reserve bank of India Act, 1934 (2 of 1934) shall not apply to any non - banking financial company which is.

• Engaged in micro financing activities, providing credit not exceeding Rs. 50,000 for a business enterprise and Rs. 1,25,000 for meeting the cost of a dwelling unit to any poor person for enabling him to raise his level of income and standard of living; and
• Licensed under Section 25 of the Companies Act, 1956; and
• Not accepting public deposits as defined in paragraph 2(1)(xii) of notification No. 118 / DG(SPT)-98 dated January 31, 1998.