Table of Contents
Subject to the Exchange Control Regulations, the NBFCs can receive external commercial borrowings from foreign Overseas Corporate Bodies, individuals, FIIs, and other trusts or persons.
Can NBFC take loan from directors?
The Reserve Bank of India (RBI) has banned non-banking financial companies (NBFCs) from extending loans to its directors and their relatives to eliminate any conflict of interest in the lending operations of the finance companies.
Can a public limited company take loan from shareholders?
Shareholder: Member: Yes, can accept, but subject to the condition specified in Deposit Rules. Promoters & Their Relative: Yes, can accept if it is in stipulation of the requirement of any lending Financial Institution (FI) or Bank.
Can a company take loan from relative of director?
695(E) Private Limited Company can accept loan from the relative of the Director if relative furnish to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others.
Can NBFC take unsecured loans?
Yes, NBFCs can provide unsecured loans in the form of overdraft, cash credit, and bill discounting. The minimum amount for the loan will be higher than that of nationalized banks.
Can company take loan from Director in cash?
Can director give loan to company in cash? Yes, a director can give loan to Company in cash, keeping in view the Income Tax Act, 1961 provisions to this regards.
Can public ltd company take unsecured loan from directors?
Yes. A company can take unsecured loan from the directors and there relatives too with zero rate of interest. But while accepting deposit from directors, they must give a declaration to the company that the amount is their own money and not borrowed.
Can a company accept deposits from shareholders?
The provisions of Section 73(2) of the Companies Act, 2013 read with Rule 3 (3) of the Companies (Acceptance of Deposits) Rules, 2014, restrict a company to accept or renew any deposits from its members, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance …
What is the minimum net owned fund required for a NBFC?
It should have a minimum net owned fund of ₹ 200 lakh. (The minimum net owned fund (NOF) required for specialized NBFCs like NBFC-MFIs, NBFC-Factors, CICs is indicated separately in the FAQs on specialized NBFCs) 6. What is the procedure for application to the Reserve Bank for Registration?
How to file quarterly returns for non-deposit taking NBFCs?
In the case of non-deposit taking NBFCs having an asset size between 50 crores and 100 crores, the quarterly return shall be submitted with RBI which shall contain the basic information; such as, the name of the NBFC, the address of the NBFC, profit/loss during the last three years, and the details about the Net Owned Funds (NOF).
Can a non-banking financial companies accept deposits?
They should mandatorily get investment credit rating from any authorized credit rating agency for being eligible to accept deposits from people. Non- Deposit taking NBFC: These are the NBFC’s which cannot accept the deposit. They can only lend but cannot accept deposits from public other than paying back of the borrowed money.
What is a non-banking financial company (NBFC)?
Ans.: NBFC is a Non-Banking Financial Company which the principal business of which is: Receiving deposits under any scheme or arrangement. Note: NBFC is regulated by Reserve Bank of India. Q.2: Is Non-Banking Financial Company (NBFC) similar to Bank?