What changed
RBI issued a consolidated version of the NBFC Acceptance of Public Deposits Directions, 1998, incorporating all amendments up to June 30, 2012. This circular supersedes previous fragmented instructions and provides a single updated reference document. The notification includes definitions for Asset Finance Companies and other NBFC categories.
What it means for you
NBFCs must now refer to this consolidated notification for all public deposit-related compliance, ensuring they follow the latest rules on deposit acceptance, interest rates, and reporting. Lenders should update their internal policies and training materials to align with this unified directive. Non-compliance could attract regulatory action under the RBI Act.
What you must do
- Review the updated NBFC Public Deposit Directions (1998) as amended up to June 30, 2012 for your company type.
- Update internal compliance manuals and deposit acceptance procedures to reflect the consolidated instructions.
- Ensure all public deposit advertisements and application forms comply with the revised requirements.
- Train staff on the updated definitions, especially for Asset Finance Companies and other NBFC categories.
- Submit any required returns or certificates to the Department of Non-Banking Supervision as per the new consolidated format.
Who it affects
All Non-Banking Financial Companies (except Residuary Non-Banking Companies and Miscellaneous Non-Banking Companies), NBFC compliance officers and legal teams, Auditors certifying NBFC deposit-related returns
Does this circular replace all previous NBFC deposit directions?
Yes, this notification consolidates all amendments up to June 30, 2012 and supersedes earlier directions, including Notification No.DFC.114/DG(SPT)-98 dated January 2, 1998.
What is the definition of an Asset Finance Company under these directions?
An Asset Finance Company is a financial institution whose principal business is financing physical assets that support productive or economic activity, such as automobiles, tractors, generator sets, and earth moving equipment.
Where can I find the full updated notification?
The updated notification is available on the RBI website at www.rbi.org.in under the notifications section.