NBFC

This query is : Resolved

S.Jegadeesan (Querist)
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07 January 2011 Dear Sir,
I wish to clarify some doubts regarding NBFC formation. i.e.
1.Is it possible to carry on the business of Non Banking Financial services by a Pvt Ltd?
i.e. is it allowed to accept the deposit & give the loan to the public?
2.What are the procedures should be followed while the formation of NBFC?
3.Any other permission should be obtained from the RBI?
4.When it(RBI Permission) should be got?

Regards,
S.Jegadeesan.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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07 January 2011 1. Though a pvt. ltd. company can do NBFC business it cannot accept deposit from public. It can raise finance from banks for the purpose of funding business if it wishes to carry out.
2. The main object should contain business of NBFC and the authorised capital of the company should atleast be Rs. 2 cr and also the networth of the company should be atleast Rs. 2 cr.
3. Permission to do NBFC business should be taken before commencement of business.