No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2005-06/34 · issued 01 Jul 2005 · ~3 min read
Quick answerRBI consolidated prior directions on liquid asset maintenance and quarterly return filing for NBFCs and RNBCs into a single master circular as of June 30, 2005. RNBCs must maintain liquid assets at 10% of deposits outstanding at the close of business on the last working day of the second preceding quarter. NBFCs (other than RNBCs) are exempt from the 5% approved securities requirement but must invest at least 15% of public deposits in unencumbered approved securities and term deposits. All NBFCs/RNBCs must file quarterly returns (Forms NBS-3 or NBS-3A) in duplicate within 15 days of the month succeeding the quarter.
What changed
This master circular consolidates and updates earlier notifications (DFC(COC) No.108.ED(JRP)/97, DFC.120/ED(G)-98, DFC.121/ED(G)-98) on liquid asset maintenance and return specifications for NBFCs and RNBCs. It reaffirms that RNBCs must maintain liquid assets at 10% of deposits outstanding at the close of business on the last working day of the second preceding quarter. NBFCs (other than RNBCs) are exempt from the 5% requirement but must invest at least 15% of public deposits in unencumbered approved securities and term deposits. Quarterly returns must be submitted in duplicate within 15 days of the month succeeding the quarter, certified by an authorized official, to the relevant RBI regional office.
What it means for you
For NBFCs and RNBCs, this circular provides a single reference point for compliance with liquid asset requirements and return filing. RNBCs must ensure they hold 10% of their deposit base as liquid assets, calculated based on deposits two quarters prior. NBFCs (other than RNBCs) are exempt from the 5% approved securities requirement but must invest at least 15% of public deposits in unencumbered approved securities and term deposits. All entities must adhere to strict quarterly reporting timelines and submit returns to the correct RBI regional office, with certification by an authorized official.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Ensure RNBCs maintain liquid assets at 10% of deposits outstanding at the close of business on the last working day of the second preceding quarter.
NBFCs (other than RNBCs) must invest at least 15% of public deposits in unencumbered approved securities and term deposits as specified.
File quarterly returns (Form NBS-3 for NBFCs, Form NBS-3A for RNBCs) in duplicate within 15 days of the month following the quarter-end.
Have the quarterly return certified and signed by an authorized official of the company.
Submit the return to the Regional Office of Department of Supervision (Financial Companies Wing) of RBI under whose jurisdiction the registered office is located.
Who it affects
All Non-Banking Financial Companies (NBFCs) accepting public deposits (with specific liquid asset rules for RNBCs vs. other NBFCs), All Residuary Non-Banking Companies (RNBCs)
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 20:32 IST
Status change: withdrawn10 Jul 2026, 04:02 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the liquid asset maintenance requirement for RNBCs?
RNBCs must maintain liquid assets equal to 10% of the deposits outstanding at the close of business on the last working day of the second preceding quarter.
What is the liquid asset requirement for NBFCs (other than RNBCs)?
NBFCs (other than RNBCs) are exempt from the 5% approved securities requirement but must invest at least 15% of public deposits in unencumbered approved securities and term deposits.
What is the deadline for filing the quarterly return?
The quarterly return must be submitted in duplicate within 15 days of the month succeeding the quarter to which it relates.
Where should the quarterly return be submitted?
The return should be submitted to the Regional Office of the Department of Supervision (Financial Companies Wing) of RBI under whose jurisdiction the registered office of the NBFC/RNBC is situated.
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/34
DNBS (PD) CC No. 55 / 02.01/ 2005-06
July 1, 2005
To
The Chairman/CEOs of all Non-Banking Financial Companies
(accepting public deposits) and Residuary Non-Banking Companies
Dear Sir,
Master Circular – 'Reserve Bank of India (Non-Banking Financial
Companies) Returns Specifications 1997'
The directions on returns specifications to
be submitted by Non-Banking Financial Companies/Residuary Non–Banking Companies
(NBFCs/RNBCs) were issued by Reserve Bank of India on April 30, 1997 vide Notification
DFC (COC) No.108.ED (JRP)/97. Further, Notification No. DFC.120/ED (G)-98 dated
January 31, 1998 and Notification No.DFC.121/ED (G)-98 dated January 31, 1998
have been issued on maintenance of liquid assets by RNBCs and NBFCs respectively.
The said Notification duly updated with amendments made from time to time, if
any, as on June 30, 2005 is reproduced below.
Yours faithfully,
(D.S. Nagi)
Chief General Manager
RESERVE BANK OF INDIA
DEPARTMENT OF FINANCIAL COMPANIES
CENTRAL OFFICE
15, NETAJI SUBHAS ROAD
POST BOX No. 571
CALCUTTA - 700 001
Regulations relating to Maintenance of Liquid
Assets by NBFCs/RNBCs
Notification DFC(COC) No.108.ED(JRP)/97 dated
April 30, 1997
In exercise of the powers conferred under the
sub-section (2) of section 45IB of the Reserve Bank of India Act, 1934, (2 of
1934) for the purpose of ensuring the compliance with the maintenance of percentage
of assets by non-banking financial companies, the Reserve Bank specifies the
forms, the manner and the period of submission of the return as under -
1. These specifications are called Reserve Bank
of India (Non-Banking Financial Companies) Returns Specifications 1997.
[2 (a) every residuary non-banking company
governed by the provisions of Residuary Non-Banking Companies (Reserve Bank)
Directions, 1987 contained in Notification No. DFC.55/ DG (O)-87 dated 15 th
May 1987 shall submit a return every quarter as per Form of [NBS-3A ]
; and
(b) every non-banking financial company,
other than a residuary non-banking company as stated in clause (a) above,
shall submit a return every quarter as per the Form of [ NBS-3.]
]
3. The Quarterly Return shall be submitted in
duplicate within a period of fifteen days of the month succeeding the quarter
to which it relates.
4. The contents of the Quarterly Return shall
be certified and signed by the authorised official of the company to be true
and correct.
5. The Quarterly Return shall be submitted to
the Regional Office of Department of Supervision (Financial Companies Wing)
of Reserve Bank of India under whose jurisdiction the Registered Office of the
non-banking financial company is situated.
Sd/-
(J. R. PRABHU)
Executive Director
RESERVE BANK OF INDIA
DEPARTMENT OF FINANCIAL COMPANIES
CENTRAL OFFICE
15, NETAJI SUBHAS ROAD,
POST BOX No. 571
CALCUTTA - 700 001
(Master Notification amended up to June 30, 2005)
Regulations relating to Maintenance of Liquid
Assets by RNBCs
Notification No. DFC.120/ED(G)-98 dated January 31, 1998
In exercise of the powers conferred under sub-section
(1) of section 45IB of the Reserve Bank of India Act, 1934 (2 of 1934), and
in supersession of the Notificaion No.DFC(COC).107.ED(JRP)/97 dated April 30,
1997 the Reserve Bank of India hereby specifies that from this day, the percentage
of assets to be maintained by a residuary non-banking company governed by the
provisions of Residuary Non-Banking Companies (Reserve Bank) Directions, 1987
contained in notification No. DFC.55/DG(O)-87 dated the 15th May 1987, shall
be ten percent of the deposits outstanding at the close of business on the last
working day of the second preceding quarter.
Sd/-
(S.Gurumurthy)
Executive Director
RESERVE BANK OF INDIA
DEPARTMENT OF FINANCIAL COMPANIES
CENTRAL OFFICE
15, NETAJI SUBHAS ROAD
POST BOX NO. 571
CALCUTTA-700 001
(Master Notification amended up to June 30, 2005)
Regulations relating to Maintenance of Liquid
Assets by NBFCs
Notification No.DFC.121/ED(G)-98 dated January 31, 1998
In exercise of the powers conferred under Section
45NC read with sub-section (1) of Section 45IB of the Reserve Bank of India
Act, 1934 (2 of 1934) and in supersession of the Notification No.DFC..116/DG(SPT)-98
dated January 2, 1998, the Reserve Bank of India having considered and being
satisfied that it is necessary so to do, hereby declares that all the non-banking
financial companies other than residuary non-banking companies governed by the
provisions of Residuary Non-Banking Companies (Reserve Bank) Directions, 1987
contained in Notification No.DFC.55/DG(O)-87 dated 15th May 1987 are exempt
from the requirement to invest in unencumbered approved securities an amount,
which at the close of business on any day, shall be not less than 5 per cent
of deposits outstanding at the close of business on the last working day of
the second preceding quarter as contemplated under sub-section (1) of Section
45IB of the said Act, subject to the conditions that -
(1) every non-banking financial company, other
than a residuary non-banking company governed by the provisions of Residuary
Non-Banking Companies (Reserve Bank) Directions, 1987 contained in Notification
No.DFC.55/DG(O)-87 dated 15th May, 1987 shall invest and continue to invest
in India in unencumbered approved securities valued at the price not exceeding
the current market price of such securities an amount which shall, at the close
of business on any day -
1 [(i) on and from 1 st
April 1998 be not less than 12.5 percent;
(ii) on and from 1 st April 1999 be
not less than 15 percent; and
(iii) on and from January 1, 2000 be not
less than ten percent in approved securities and the remaining in unencumbered
term deposits in any scheduled commercial bank, the aggregate of which shall
not be less than 15 percent
of the 'public deposit', as defined
under paragraph 2(1) (xii) of the Non- Banking Financial Companies Acceptance
of Public Deposits (Reserve Bank) Directions, 1998, outstanding at the close
of business on the last working day of second preceding quarter; and]
(2) all other provisions of Section 45IB shall
mutatis-mutandis be applicable to the above requirement as if the expression
'public deposit' is the same as the expression 'deposit'
as contemplated under the said provision.
(S. Gurumurthy)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/34 · issued 01 Jul 2005. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2327&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.