What changed
This master circular consolidates earlier notifications on NBFC/RNBC return specifications and liquid asset maintenance, updated as of June 30, 2008. It reaffirms the quarterly NBS-3/NBS-3A return format, the 10% liquid asset requirement for RNBCs, and the 15% liquid asset requirement for NBFCs (other than RNBCs) based on public deposits.
What it means for you
NBFCs and RNBCs must continue filing quarterly returns in prescribed forms within 15 days of the month succeeding the quarter. RNBCs face a 10% liquid asset requirement on outstanding deposits. NBFCs (other than RNBCs) must maintain liquid assets of at least 15% of public deposits (with specific sub-limits). Compliance ensures regulatory oversight and avoids penalties.
What you must do
- File quarterly NBS-3 (NBFCs) or NBS-3A (RNBCs) returns within 15 days of the month succeeding the quarter.
- Ensure RNBCs maintain 10% liquid assets of deposits outstanding at close of business on last working day of second preceding quarter.
- Ensure NBFCs (other than RNBCs) maintain liquid assets of at least 15% of public deposits (with sub-limits: from January 1, 2000, 10% in approved securities and remaining in term deposits) outstanding at close of business on last working day of second preceding quarter.
- Submit returns in duplicate to the relevant RBI Regional Office (Financial Companies Wing).
- Have returns certified and signed by an authorized official as true and correct.
Who it affects
All Non-Banking Financial Companies (NBFCs) other than Residuary Non-Banking Companies, Residuary Non-Banking Companies (RNBCs)
What is the deadline for submitting the quarterly return?
The quarterly return must be submitted within 15 days of the month succeeding the quarter to which it relates.
What is the liquid asset requirement for RNBCs?
RNBCs must maintain liquid assets equal to 10% of 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) must maintain liquid assets of at least 15% of public deposits outstanding at the close of business on the last working day of the second preceding quarter. From January 1, 2000, this includes 10% in approved securities and the remaining in unencumbered term deposits in any scheduled commercial bank.
Where should the quarterly return be submitted?
The return should be submitted in duplicate 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 located.