COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

RBI to complete registration process for NBFCs by year-end

The Reserve Bank of India would complete the entire process of registration of all non-banking financial companies by the end of 1998, according to the monetary and credit policy announced by the central bank today.

''Of about 9000 applications of NBFCs found to be eligible for registration on the basis of minimum net owned fund of Rs 2.5 million, the RBI has already decided on the applications of 7300 companies. The entire process is expected to be completed by the end of December 1998'', the credit policy states.

Also, the RBI would make changes in the regulatory framework as soon as the decisions of the central government and any legislative changes that may be required to give effect to recommendations of the task force, which was set up by the Centre to suggest effective regulation of the NBFC sector, are made available.

The RBI is also undertaking an investors' information programme to ensure that the investors are fully aware of the prescribed ceiling on interest rates, disclosure requirements, unsecured nature of deposits and other aspects of NBFC operations.

The apex bank along with the government will continue to be open to ''suggestions'' and ''advice'' from experts and market participants to further refine the regulatory framework for NBFCs, develop self-regulatory mechanism for smaller NBFCs and improve operational effectiveness.

UNI

The RBI's Credit and Monetary Policy 1998-99