What changed
RBI issued a circular enclosing the updated Notification No.DNBC.39/DG(H)-77 dated 20th June 1977, as amended up to June 30, 2013. The updated text consolidates all amendments to the 1977 Directions. The 1973 Directions were superseded by the original 1977 Directions, not by this update.
What it means for you
Miscellaneous Non-Banking Companies must now refer to this consolidated version for all compliance requirements, including deposit acceptance limits, application forms, receipts, registers, and reporting. The update ensures clarity and reduces the risk of missing any prior amendments. Banks dealing with MNBCs should verify that their counterparties are following the latest rules.
What you must do
- Download and review the updated MNBC Directions 1977 from the RBI website or the circular enclosure.
- Update internal compliance checklists and training materials to reflect the consolidated version.
- Advise MNBC clients or counterparties to align their deposit acceptance and reporting practices with the updated directions.
- Ensure any references to the 1973 Directions are replaced with the 1977 Directions as amended.
Who it affects
Miscellaneous Non-Banking Companies (MNBCs), Banks with MNBC clients or deposit relationships, RBI supervision teams monitoring NBFC compliance
What is the effective date of the updated Directions?
The original Directions came into force on July 1, 1977. This circular consolidates amendments up to June 30, 2013, but does not change the effective date of the Directions themselves.
Do these Directions apply to all MNBCs in India?
Yes, they apply to every financial institution that is a company and carries on specified types of business, including collecting contributions or subscriptions for savings or prize schemes, in any place in India.
Where can I find the full updated text?
The updated notification is enclosed with this circular and also placed on the RBI website at www.rbi.org.in.