Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions

India

(enacted in 2007)

The Non-Banking Financial (Non- Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions were adopted by the Reserve Bank of India (RBI) in 2007. They apply to all non-deposit taking NBFC with a few exceptions, such as non-systemically important investment or loan companies.

The Directions are organized as follows:

  • Definitions;
  • Income Recognition;
  • Income from Investments;
  • Accounting Standards;
  • Accounting of Investments;
  • Need for on Demand/Call Loans;
  • Asset Classification;
  • Provisioning Requirements;
  • Disclosure in the Banking Sheet;
  • Constitution of Audit Committee by NBFC;
  • Accounting Year
  • Schedule to the Banking Sheet;
  • Transactions in Government Securities;
  • Submission of a Certificate from Statutory Auditor to the Bank;
  • Requirement as to Capital Adequacy;
  • Loans against NBFC’s Own Shares Prohibited;
  • Concentration of Credit/Investment;
  • Information as to Change of Address, Directors, Auditors, etc, to Be Submitted;
  • Norms Relating to Infrastructure Loan;
  • Exemptions;
  • Interpretation; and
  • Repeal and Saving.