Friday, July 13, 2012

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.


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