Wednesday, 8 August 2012

NBFC-MFI norms modified

All registered non-banking financial companies (NBFCs) intending to convert themselves into non-banking financial company-micro finance institutions (NBFC-MFIs) must seek registration with immediate effect, and, in any case, not later than October 31, the Reserve Bank of India said in a notification.
The NBFCs have to maintain net-owned funds (NOF) at Rs..3 crore by March 31, 2013, and at Rs.5 crore by March 31, 2014, “failing which they must ensure that lending to the micro finance sector, that is, individuals, SHGs or JLGs, which qualify for loans from MFIs, would be restricted to 10 per cent of the total assets,” the RBI said in a notification. The RBI made some modifications in the directions issued on December 2, 2011, to NBFC-MFIs.
In order to provide encouragement to NBFCs operating in the north-eastern region, the minimum NOF is to be maintained at Rs.1 crore by March 31, 2012, and at Rs.2 crore by March 31, 2014.

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