What changed
The RBI released a consolidated notification of the 1977 Directions, updated to include all amendments effective as of June 30, 2010. This supersedes the previous version from August 23, 1973, and any subsequent piecemeal amendments. The updated text is now available on the RBI website for easy reference.
What it means for you
For miscellaneous non-banking companies, this consolidation simplifies regulatory compliance by providing a single, authoritative document with all current instructions in one place.
What you must do
- Review the updated 1977 Directions to ensure compliance with the latest rules as per the consolidated notification.
- Access the RBI website at http://www.rbi.org.in for the full updated text of the directions.
Who it affects
Miscellaneous non-banking companies (MNBCs) operating in India
What is the scope of the Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 1977?
These directions apply to financial institutions that are companies and engage in activities like collecting monies through subscriptions or contributions for prize schemes, chit funds, or similar arrangements, including awarding prizes or refunding contributions.
Does this circular introduce any new rules?
No, this circular is a consolidation of existing directions and amendments up to June 30, 2010. It does not introduce new requirements but provides a single updated reference document.
Where can I find the full updated text of the directions?
The full updated notification is available on the RBI website at http://www.rbi.org.in. The circular also includes the text of the directions as amended.