04 August 2008
Mere accepting of deposits will not make a company as NBFC.
To become a NBFC, the company should have minimum net owned fund as prescribed by RBI.
The company should submit its application for registration in the prescribed format alongwith necessary documents for RBI's consideration.
The RBI then issues certificate of registration after satisfying itself that the conditions as enumerated in Section 45-IA of the RBI Act, 1934 are satisfied.
Additional information:
All NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid certificate of registration with authorisation to accept public deposits can accept/hold public deposits.
The NBFCs accepting public deposits should have minimum stipulated net owned fund and comply with the directions issued by the RBI.
05 August 2008
It seems you have got my question wrong. I referred to INCOME from fixed deposits made by a NBFC. If a company's total income consists of more than 50% income from such fixed deposits, will the company satisfy one test of being treated as a NBFC ie having income from financial assets more than 50% of total income?
CAclubindia
