"Hi! I am a cost accountant working as a Finance Manager in a private concern."
RBI has standardized the 90-day NPA classification rule across all NBFC categories, including NBFC-BL entities, effective 31 March 2026. The framework also prescribes detailed provisioning requirements for standard, sub-standard, doubtful, and loss assets.
The article explains that a company qualifies as an NBFC only when more than 50% of both its assets and income arise from financial activities. Failing either condition means the entity cannot be treated as an NBFC under the RBI Act, 1934.
NBFC-MFI Directors’ Report 2025 reviews financials, noting capital adequacy exceeding the 15% mandate and the required Statutory Reserve transfer. The report highlights heightened microfinance industry stress, compliance with RBI guidelines, and the transition to 100% demat shareholding.
A rights issue in a private limited company requires amending the authorized capital if necessary, holding Board and EGM meetings, and circulating a Letter of Offer for 15-30 days.
NBFC-MFI shifts to NBFC-ICC to diversify loans, including secured and unsecured credit. RBI norms, NOF ₹10 crore, and compliance guide the transition.
