NBFC Quarterly Return & Liquid Asset Norms Consolidated

RBI/2008-09/5 DNBS (PD) CC No.119/03. 02.01/2008-09 July 1, 2008 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 Notifications duly updated as on June 30, 2008 are reproduced below. Yours faithfully, (P. Krishnamurthy) Chief General Manager In-Charge RESERVE BANK OF INDIA DEPARTMENT OF NON-BANKING SUPERVISION CENTRAL OFFICE CENTRE I, WORLD TRADE CENTRE, CUFFE PARADE, COLABA, MUMBAI 400 005. 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 15th 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. (J. R. PRABHU) Executive Director RESERVE BANK OF INDIA DEPARTMENT OF NON-BANKING SUPERVISION CENTRAL OFFICE CENTRE I, WORLD TRADE CENTRE, CUFFE PARADE, COLABA, MUMBAI 400 005. 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. (S.Gurumurthy) Executive Director RESERVE BANK OF INDIA DEPARTMENT OF NON-BANKING SUPERVISION CENTRAL OFFICE CENTRE I, WORLD TRADE CENTRE, CUFFE PARADE, COLABA, MUMBAI 400 005. 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 1st April 1998                 be not less than 12.5 percent; (ii) on and from 1st 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 1 Substituted, vide notification No. 122 dated January 31, 1998 2 Amended, vide notification No. 144 dated June 30, 2000 3 Amended, vide notification No. 144 dated June 30, 2000 4 Inserted vide Notification No.139 dated January 13, 2000

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/5 · issued 01 Jul 2008. The plain-English explanation above is BankPulse’s own independent summary.

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Topics: NBFC Regulations

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Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. NBFC · CRAR (Capital adequacy) · Gross NPA (GNPA) · Wilful defaulter