RBI specifies ten crore rupees as net owned fund (NOF) required for Investment and Credit Company (NBFC-ICC), Micro Finance Institution (NBFC-MFI) and Non-banking financial company – Factor (NBFC-Factor) to commence or carry on the business of non-banking financial institution from October 01, 2022 subject to some conditions.
RESERVE BANK OF INDIA
(Department of Regulation)
CENTRAL OFFICE
Mumbai, the 17th March, 2022
Net owned Fund for NBFCs
Notification No. DOR.CRE.060.CGM(MM) 2022.—In exercise of the powers conferred by clause (b) of sub-section (1) of Section 45-IA of the Reserve Bank of India Act, 1934 (Act 2 of 1934) and by Section 3 and Section 4 of the Factoring Regulation Act, 2011 (Act 12 of 2012) and all the powers enabling it in that behalf, the Reserve Bank of India hereby specifies ten crore rupees as net owned fund (NOF) required for following categories of non-banking financial companies to commence or carry on the business of non-banking financial institution from October 01, 2022-
(a) Non-banking financial company – Investment and Credit Company (NBFC-ICC)
(b) Non-banking financial company – Micro Finance Institution (NBFC-MFI)
(c) Non-banking financial company – Factor (NBFC-Factor)
Provided that the above categories of existing non-banking financial companies holding a certificate of registration as on October 22, 2021 issued by the Reserve Bank of India and having net owned fund of less than ten crore rupees, shall achieve the NOF of ₹10 crore as per the following glide path:
| NBFCs | By March 31, 2025 | By March 31, 2027 |
| NBFC-ICC | ₹5 crore | ₹10 crore |
| NBFC-MFI | ₹7 crore | ₹10 crore |
| NBFC-MFI in North Eastern Region of the country |
₹5 crore | ₹10 crore |
| NBFC-Factor | ₹7 crore | ₹10 crore |
2. The words and expressions used herein shall have the same meaning as assigned to them in Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
MANORANJAN MISHRA, Chief General Manager
[ADVT.-III/4/Exty./717/2021-22]
Net own fund limit for exixting company? issues