world focus magazine

world focus magazine

world focus magazine Published this article page no  98 Restrictionsreduction in variable operating costs (For NBFCs) However even under PCA banks are allowed to invest in government securitiesother highquality liquid investments. About NBFCs and their Regulation NBFCs also known as nonbank financial institutions are entities that provide certainbank like and financial services but do not hold a banking license and excludes entities with agriculture activity industrial activity purchase or sale of any goods (other than securities) as principal business or providing any service and salepurchaseconstruction of immovable property. o Principal Business is the financial activity which consists of more than 50% of company assets and over 50% if its gross income. NBFCs difference from banks NBFCs cant accept demand deposits NBFCs are not part of payment and settlement system and cant issue cheques drawn on itself and DICGC facility is not available to depositors of NBFCs. Regulation NBFCs are regulated by RBI although some NBFCs are regulated by SEBI IRDAI National Housing Bank etc. to avoid dual regulation. Systemically important NBFCs NBFCs whose asset size is of  500 crore or more are considered as systemically important NBFCs. Example. Power Finance Corporation Limited (PFCL) Rural Electrification Corporation Limited (RECL) etc. Regulation of NBFCs Revised ScaleBased Regulatory (SBR) Framework Recently Reserve Bank of India (RBI) introduced a revised scalebased regulatory framework for nonbanking financial companies (NBFCs). Under the revised regulatory framework (to come into effect from 01 October 2022) they will be subjected to a ScaleBased Regulatory (SBR) Framework with Fourlayers based on their size activity and perceived riskiness (see image) world focus magazine buy. 

world focus magazine