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Dhanush A asked 1 year ago

Whats the NBFC net owned funds to be maintained? Is it minimum 2cr and maximum 100cr? Please clarify because it different across author materials and ICAI.

1 Answers
RaviRavi Staff answered 1 year ago

Below is text from Sec 45-IA from RBI Act

From below it is evident that RBI has range from 25 lakhs to 100 crore for minimum net owned funds, there is no limit for maximum net owned limit, RBI issued circular that minimum net owned funds should be 2 crores from 25 lakhs long back. 
45-IA. (1) Notwithstanding anything contained in this Chapter or in any other law for the time being in force, no non-banking financial company shall commence or carry on the business of a non-banking financial institution without—

(a)
 
obtaining a certificate of registration issued under this Chapter; and

[(b)
 
having the net owned fund of twenty-five lakh rupees or such other amount, not exceeding hundred crore rupees, as the Bank may, by notification in the Official Gazette, specify:

 
 
Provided that the Bank may notify different amounts of net owned fund for different categories of non-banking financial companies.]

 

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