Capital Guidelines for NBFCs under RBI’s Scale-Based Framework
Capital is the backbone of financial stability. Recognizing this, the Reserve Bank of India (RBI) has tightened and modernized the capital guidelines for Non-Banking Financial Companies (NBFCs) under its Scale-Based Regulatory (SBR) Framework. The norms focus on minimum Net Owned Fund (NOF), capital adequacy ratios, and progressive strengthening of buffers —all designed to make NBFCs…
Read article Nomenclature and Regulatory Norms for NBFCs under RBI’s Scale-Based Framework
The Reserve Bank of India (RBI) has steadily refined the nomenclature and regulatory norms for Non-Banking Financial Companies (NBFCs) through its Scale-Based Regulatory (SBR) Framework. This approach ensures that NBFCs are classified clearly, monitored effectively, and regulated proportionally to their size and risk. Let’s break it down. Nomenclature of NBFCs NBFCs are broadly categorized based…
Read article RBI’s Revised Scale-Based Regulatory Structure for NBFCs
The Reserve Bank of India (RBI) has rolled out a Revised Scale-Based Regulatory (SBR) Framework for NBFCs, marking a significant step in strengthening risk-based supervision and improving the resilience of non-banking financial companies (NBFCs) in India. This reform reshapes how NBFCs are governed, aligning oversight with their size, complexity, and systemic importance. Let’s break down…
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What is PMLA and reporting of Suspicious Transactions by Banks?
The Prevention of Money Laundering Act, 2002 (PMLA) forms the core of the legal framework put in place by India to combat money laundering. PMLA and the Rules notified there under came into force with effect from July 1, 2005. Director, FIU-IND, and Director (Enforcement) have been conferred with exclusive and concurrent powers under relevant…
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Which are the records that need to be maintained under PMLA?
Prevention of Money Laundering Act, 2002(PMLA) is an Act enacted by the Government of India to prevent money-laundering and to provide for confiscation of property derived from money-laundering. PMLA and the Rules notified there under came into force with effect from July 1, 2005. The Rules 3, 4 and 5 of PMLA 2005 amended by…
How to Register an NBFC in India: Step-by-Step Guide
Non-Banking Financial Companies (NBFCs) are an essential part of India’s financial ecosystem, providing credit and financial services to individuals and businesses beyond the reach of traditional banks. Setting up an NBFC requires strict compliance with the Reserve Bank of India (RBI) regulations. Here’s a detailed breakdown of the requirements, documents, and registration process for obtaining…
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