What changed
Previously, the disclaimer requirement applied to advertisements in print or electronic media. Now, a new clause 13(i)(A) specifically requires that any advertisement in electronic media (including TV) that may attract deposits, even if not soliciting deposits, must include a caption/band with the prescribed disclaimer.
What it means for you
NBFCs must review all their electronic media campaigns—even brand-building ads—to ensure the prescribed disclaimer is prominently displayed. Failure to comply will be treated as a violation of the Certificate of Registration conditions, inviting adverse action. This increases compliance burden but enhances depositor transparency.
What you must do
- Update all electronic media ad scripts (TV, web, social media) to include the mandatory disclaimer with CoR date and RBI non-guarantee statement.
- Ensure the disclaimer is displayed as a caption/band in TV ads, even if the ad does not solicit deposits.
- Review existing ad inventory and pending campaigns for compliance with immediate effect from April 4, 2007.
Who it affects
All deposit-taking NBFCs (excluding Residuary Non-Banking Companies), Marketing and compliance departments of NBFCs, Advertising agencies handling NBFC accounts
Does this apply to ads that do not mention deposits at all?
Yes. The circular explicitly covers advertisements that 'purely for promoting its business may attract deposits.' Even brand-building ads on TV or websites must carry the disclaimer.
What is the exact wording required in the disclaimer?
The disclaimer must state: (i) viewers should refer to the newspaper ad or application form for deposit solicitation details; (ii) the company holds a valid CoR dated [date] from RBI under section 45-IA, but RBI does not guarantee financial soundness or repayment.
What happens if we fail to include the disclaimer?
Non-compliance will be treated as a violation of the conditions of the Certificate of Registration and will invite adverse action from RBI.