RBI:
RBI has made significant changes in the regulatory framework of NBFC sector. The changes are aimed to address risks, address regulatory gaps and arbitrage arising from differential regulations, both within the sector as well as vis-a-vis other financial institutions, harmonies and simplify regulations to facilitate a smoother compliance culture among NBFCs, strengthen governance standards. Changes among other are NBFCs to have minimum NOF of Rs. 2 cr. by March 2017 to continue the business, NPA definition – overdue for 5 month by March 31, 2016, 4 months by March 31, 2017, 3 Months by March 31, 2018, Amendment to corporate governance, constitution of committees, criteria for fit and proper person for being a Director, disclosure from directors, Deed of covenant from Director etc.
RBI:
RBI has reviewed & made amendments to the Non-Banking Financial Company – Factors (Reserve Bank) Directions, 2012 and after taking into consideration the representation received from the industry and also to encourage the factoring sector in India, it has been decided that an NBFC for registering as NBFC-Factor shall ensure that its financial assets in the factoring business constitute at least 50 per cent (earlier 75%) of its total assets and its income derived from factoring business is not less than 50 per cent (earlier 75%) of its gross income.
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