Statutory Guide for NBFCs

This book is an authentic & updated Compendium of the Reserve Bank of India’s (RBI) Directions & Guidelines governing various Non-Banking Financial Companies (NBFCs). It consolidates and presents the regulatory framework NBFCs must comply with, ensuring you have the most current and reliable reference for all your professional needs.

It provides exhaustive coverage of the laws and regulations applicable to:

Non-Banking Financial Companies (NBFCs)
Residuary Non-Banking Companies (RNBCs)
Miscellaneous Non-Banking Companies (MNBCs)
Mortgage Guarantee Companies
Within its scope, this book includes updated & amended text of the relevant NBFC laws along with:

Directions/Master Directions
Circulars
Notifications
RBI Guidelines
Rules/Regulations
Clarifications
Orders
A dedicated section provides a succinct yet thorough ‘Overview of Law relating to NBFCs’, enabling readers to understand better the legal and regulatory environment in which NBFCs operate in India. This overview acts as a primer for more detailed explorations in subsequent divisions.

This book will be helpful for:

Legal Practitioners & Law Firms ? Offering detailed guidance on NBFC-related litigation, advisory, and compliance issues
NBFCs & Financial Institutions ? Serving as an operational manual for day-to-day regulatory compliance and strategic planning
Stakeholders in the Financial Services Sector ? Providing in-depth insights into RBI’s evolving directives, clarifications, and governance norms
Its detailed analysis of the regulatory landscape, including references to relevant case law, clarifications, and FAQs, makes it the go-to resource for professionals seeking clarity on NBFC law.

The Present Publication is the 29th Edition | 2025, incorporating all amendments made up to 1st December 2024, with the following noteworthy features:

[All-in-One Reference] Brings together RBI Directions, Master Directions, Circulars, Notifications, Rules/Regulations, and more
[Easy Navigation] Well-structured divisions, sequential arrangement of legal sources, and a thorough subject index
This book is divided into eleven divisions, carefully sequenced to guide you through every significant facet of NBFC legislation and practice:

Law Relating to NBFCs
10+ Directions ? Including acceptance of public deposits, scale-based regulations, KYC guidelines, prudential norms, corporate governance, etc.
Guidelines ? Covering RBI’s broad instructions and advisories for NBFCs
Exemptions ? Detailing specific exemptions to various categories of NBFCs under the RBI Act
Schemes ? Analysing special schemes for financing, recovery, restructuring, etc.
Miscellaneous Instructions ? Encompassing Fair Practices Code, credit card issuance, audit requirements, and more
Clarifications from the Reserve Bank of India (2016?2024)
A ready reference to official clarifications, circulars, FAQs, and interpretative guidance issued by RBI over the years, providing solutions to practical queries and complex regulatory scenarios
Law Relating to Residuary Non-Banking Companies
Clear exposition of the Residuary Non-Banking Companies (Reserve Bank) Directions, 2016
Deposit norms, prudential regulations, statutory investments, and compliance reporting for RNBCs
Law Relating to Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 2016
Explaining the frameworks unique to MNBCs, including permissible activities, deposit acceptance from shareholders, and RBI’s supervisory approach
Law Relating to Mortgage Guarantee Companies
Detailed coverage of Mortgage Guarantee Companies (Reserve Bank) Directions, 2016
Guidelines on registration, operational protocols, prudential norms, and risk management in mortgage guarantee business
Foreign Direct Investments in the NBFC Sector
Comprehensive insights into FDI policy, eligibility norms, and compliance obligations, including relevant provisions under FEMA and recent RBI amendments
Foreign Exchange Management (Deposit) Regulations
Covers FEMA 5(R)/2016-RB and subsequent amendments, essential for NBFCs accepting foreign currency deposits or dealing with non-resident clients
Lending to NBFCs & Other Matters
Bank Finance to NBFCs ? Regulatory guidelines, eligibility conditions, prudential limits, and due diligence expectations
Amalgamation/Merger of NBFCs with Banks ? Procedural requirements, RBI approvals, and other compliance obligations
Credit Card, Debit Card & Prepaid Card Operations ? Instructions for both banks and NBFCs issuing or partnering in card operations
Regulatory Measures towards Consumer Credit & Bank Credit to NBFCs ? Recent circulars detailing interest rate norms, consumer protection measures, and enhanced disclosure standards
Prescribed Returns
Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016 ? Detailed guidance on statutory reporting (NBS-1, NBS-2, NBS-3, ALM returns, etc.)
Submission of Returns by Government-Owned Non-Banking Financial Companies ? Special rules for government-owned entities, covering simplified compliance processes
Insolvency & Bankruptcy Code (IBC) Provisions for NBFCs
Examines how the IBC framework applies to NBFCs, including the insolvency resolution and liquidation process for financial service providers
Relevant government notifications and judicial interpretations