disha neha doc
TRANSCRIPT
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COMMERCIAL BANKS IN INDIA
Introduction
In the earlier societies functions of a bank were done by the corresponding institutions
dealing with loans and advances. Britishers brought into India the modern concept ofbanking by the start of Bank of England in 1694. In 1708, the bank of England was given
the monopoly for the issue of currency notes by an Act. In nineteenth century various
banks started operations, which primarily were receiving money on deposits, lendingmoney, transferring money from one place to another and bill discounting.
History of Banking in India:
Banking in India has a very old origin. It started in the Vedic period where literatureshows the giving of loans to others on interest. The interest rates ranged from two to five
percent per month. The payment of debt was made pious obligation on the heir of the
dead person.
Modern banking in India began with the rise of power of the British. To raise the
resources for the attaining the power the East India Company on 2 nd June 1806 promotedthe Bank of Calcutta. In the mean while two other banks Bank of Bombay and Bank of
Madras were started on 15th April 1840 and 1st July, 1843 respectively. In 1862 the right
to issue the notes was taken away from the presidency banks. The government also
withdrew the nominee directors from these banks. The bank of Bombay collapsed in1867 and was put under the voluntary liquidation in 1868 and was finally wound up in
1872. The bank was however able to meet the liability of public in full. A new bank
called new Bank of Bombay was started in 1867.
On 27
th
January 1921 all the three presidency banks were merged together to form theImperial Bank by passing the Imperial Bank of India Act, 1920. The bank did not havethe right to issue the notes but had the permission to manage the clearing house and hold
Government balances. In 1934, Reserve Bank of India came into being which was made
the Central Bank and had power to issue the notes and was also the banker to theGovernment. The Imperial Bank was given right to act as the agent of the Reserve Bank
of India and represent the bank where it had no braches.
In 1955 by passing the State Bank of India 1955, the Imperial Bank was taken over andassets were vested in a new bank, the State Bank of India.
Bank Nationalization:
After the independence the major historical event in banking sector was the
nationalization of 14 major banks on 19 th July 1969. The nationalization was deemed as a
major step in achieving the socialistic pattern of society. In 1980 six more banks werenationalized taking the total nationalized banks to twenty.
Various Types of banking services:
The flow chart below shows the various types of banking services:
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Land Mortgage IFCI
Rural Credit SFCsMutual Funds
Industrial Dev. IRBI
Housing Finance NABARD
EXIM Bank HDFCSIDBI
Private Sector
NBFC
Structure of schedule commercial banks:
The composition of the board of directors of a scheduled commercial bank shall consistof whole time chairman. Section 10A of the Banking Regulation Act, 1949 provides that
not less than fifty-one per cent, of the total number of members of the Board of directors
of a banking company shall consist of persons, who shall have special knowledge or
practical experience in respect of one or more of the matters including accountancy,agriculture and rural economy, banking, co-operation, economics, finance, law, small-
scale industry, or any other matter the special knowledge of, and practical experience in,
which would, in the opinion of the Reserve Bank, be useful to the banking company. Outof the aforesaid number of directors, not less than two shall be persons having special
knowledge or practical experience in respect of agriculture and rural economy, co-
operation or small-scale industry.
Besides the above the board of the scheduled bank shall consist of the directors
representing workmen and officer employees. The Reserve Bank of India and the Central
Government also has right to appoint their nominees into the board of the banks.
Commercial
Banks
Specialized
banks
Institutional
banks
Non Banking
Financial Institutions
Nationalisedbanks (20)
SBI and
Associate
Banks
Private SectorsBanks
Foreign Banks
Old private
sector banks
New private
sector banks
CENTRAL BANK
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Present scenario of the banks in India:
Banks are extremely useful and indispensable in the modern community. The bankscreate the purchasing power in the form of bank notes, cheques bills, drafts etc, transfers
funds bring borrows and lenders together, encourage the habit of saving among people.
The banks have played substantial role in the growth of Indian economy. From the
meager start in 1860 the banks have come to long way. At present in India there are 20
nationalized banks, State bank of India and its seven Associate banks, 21 old privatesector banks and 8 new private sector banks. Besides them there are more than 30 foreign
banks either operating themselves or having their branches in India. The statistical table
hereunder shows the financial position of the banks as on 31.03.2005.
Statistical table for banks in India (Year 2004-05)
(Rs. In Crores)
State bank of India and its associates
Name of bank Year ofincorporatio
n
No. ofOffices
Networth Deposits Advances Interestincome
NetNPA
ratio
State Bank of
Bikaner & Jaipur
1966 833 1298 19038 12009 1741 1.61
State Bank of
Hyderabad
1941 943 1765 28930 15600 2325 0.61
State Bank of India 1955*. 9161 24072 367048 202374 32428 2.65State Bank of
Indore
1960 456 904 13807 9041 1110 1.00
State Bank of
Mysore
1913 639 756 13585 8781 168 0.92
State Bank of
Patiala
1917 754 2045 26496 15359 2133 1.23
State Bank of
Saurashtra
1902 429 794 12613 6714 1132 1.40
State Bank of
Travancore
1945 681 1130 24133 14848 2008 1.81
* From 27th January 1921 to 30th June 1955 it was Imperial Bank of India, which cameabout by merger of Bank of Bengal (2nd June 1806), Bank of Bombay (15th April 1840)
and Bank of Madras (1st July, 1843).
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Nationalized Banks
Name of bank Year of
incorporatio
n
No. of
Offices
Networth Deposits Advances Interest
income
Net
NPA
ratio
Allahabad Bank 1865 2027 2328 40762 21151 3186 1.28Andhra Bank 1923 1159 1837 27551 17517 2273 0.28
Bank of Baroda 1908 2772 5628 81333 43400 6431 1.45
Bank of India 1906 2668 4465 78821 56013 6032 2.77
Bank ofMaharashtra
1935 1330 1543 28844 13062 2368 2.15
Canara Bank 1906 2627 6109 96908 60421 7572 1.88
Central Bank of
India
1911 3239 3265 60752 27277 5205 2.98
Corporation Bank 1906 799 3054 27233 18546 2250 1.12
Dena Bank 1938 1072 1104 20096 11309 1725 5.23
Indian Bank 1907 1417 5936 34809 18360 2871 1.35Indian Overseas
Bank
1937 1583 2575 44241 25205 3951 1.27
Oriental Bank of
Commerce
1943 1166 3327 47850 25299 3572 1.29
Punjab & Sind
Bank
1908 787 440 14171 6322 1249 8.11
Punjab NationalBank
1895 4117 8161 103167 60413 8460 0.20
Syndicate Bank 1925 1905 2199 46295 26729 3758 1.59
UCO Bank 1943 1801 2049 49470 27656 3547 2.93
Union Bank ofIndia
1919 2140 3614 61831 40105 4970 2.64
United Bank of
India
1950 1343 1957 25348 11390 2133 2.43
Vijaya Bank 1931 966 1590 25618 14336 2094 0.59
Old private Sector Banks
Name of bank Year ofincorporatio
n
No. ofOffice
s
Networth
Deposits
Advances
Interest
incom
e
NetNPA
ratio
Bank of Rajasthan 1943 388 351 8120 2896 522 2.50
Bharat Overseas Bank 1973 91 199 2749 1651 219 1.56
Catholic Syrian Bank 1920 314 210 4021 2289 368 3.80
City Union Bank 1904 137 241 3095 2013 291 3.37
Development CreditBank
1995** 88 200 3895 2001 303 6.83
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Dhanalakshmi Bank 1927 180 114 2339 1410 192 3.92
Federal Bank 1931 471 724 15193 8823 1191 2.21
Ganesh Bank ofKurundwad
-- 31 11 217 95 18 8.32
ING Vysya Bank 1930 381 710 12569 9081 991 2.13
Jammu & Kashmir Bank 1938 439 1665 21645 11517 1549 1.41Karnataka Bank 1924 398 978 10837 6287 840 2.29
Karur Vysya Bank 1926 249 761 6672 4620 591 1.66
Lakshmi Vilas Bank 1926 239 230 3496 2318 298 4.98
Lord Krishna Bank 1940 118 181 2176 1387 195 4.22
Nainital Bank 1922 69 76 933 363 74 0.00
Ratnakar Bank 1943 75 45 784 424 66 5.54
Sangli Bank 1948 192 85 1985 812 137 4.30
SBI Comm. & Intl. Bank 1993 3 88 331 231 26 7.65
South Indian Bank 1929 438 456 8492 5365 709 3.81
Tamilnad Mercantile
Bank
1921 183 559 4827 2626 513 2.95
United Western Bank 1936 237 244 6453 3976 487 5.97
** Converted to a private sector commercial bank on 31st May, 1995. Started as a Credit
Society set up by the followers of His Highness the Aga Khan in the 1930s and later
converted into Co-operative Bank.
New Private Sector banks
Name of bank Year of
incorporatio
n
No. of
Offices
Networth Deposits Advances Interest
income
Net
NPA
ratioBank of Punjab* 1995 120 241 4307 2417 329 4.64
Centurion Bank 1994 77 590 3530 2194 346 2.51
HDFC Bank 1994 446 4520 36354 25566 3093 0.24
ICICI Bank 1994 519 12900 99819 91405 9410 1.65
IDBI Bank Ltd. 1994 157 5929 15103 45414 2656 1.74
IndusInd Bank 1995 127 830 13114 9000 1134 2.71
Kotak Mahindra
Bank
1985 54 757 4300 4017 420 1.56
UTI Bank 1994 249 2422 31712 15603 1924 1.39
Yes Bank 2003 3 217 663 761 30 0.00
* now merged with Centurion Bank
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Foreign Banks
Name of bank No. of
Offices
Networth Deposits Advances Interest
income
Net NPA
ratio
ABM Amro Bank 19 1347 7077 9831 907 0.35
Abu DhabiCommercial Bank
2 71 1663 90 150 12.73
American ExpressBank
8 301 2264 1483 270 0.99
Antwerp DiamondBank
1 128 50 434 26 0.00
Arab Bangladesh
Bank
1 45 23 22 3 0.28
Bank International
Indonesia
1 74 11 20 1.81 10.49
Bank of America 5 1437 1993 3219 257 0.00
Bank of Bahrain &
Kuwait
2 67 394 264 34 5.53
Bank of Ceylon 1 54 104 59 8 13.76
Bank of NovaScotia
5 257 1602 2053 159 3.08
Bank of Tokyo
Mitsubishi
3 369 532 559 57 0.01
Barclays Bank 1 698 75 2 31 0.00BNP Paribas 9 333 1674 1719 176 0.00
Calyon Bank 4 328 1306 674 117 0.30
Chinatrust
Commercial Bank
1 45 48 59 9 6.02
Cho Hung Bank 1 72 97 69 0.99 0.00
Citibank 35 3310 21484 18111 2203 1.00
DBS Bank 1 556 611 560 30 0.00
Deutsche Bank 5 1232 3625 2541 390 0.00
Hongkong &Shanghai Banking
Corpn.
39 3578 17013 12621 1627 0.50
JP Morgan Chase
Bank
1 266 930 150 40 0.00
Krung Thai Bank 1 40 34 16 4 0.00
Mashreq Bank 2 58 269 19 29 0.00
Mizuho Corporate
Bank
1 164 110 267 17 0.00
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Oman International
Bank
2 161 225 13 18 55.05
Societe Generale 2 321 527 159 37 0.00
Sonali Bank 1 6 22 6 1 1.90
Standard Chartered
Bank
85 3234 22522 19970 2493 1.12
State Bank of
Mauritius
3 126 148 222 36 4.08
UFJ Bank 1 228 71 102 16 0.00
(Source: A profile on banks 2004-05, RBI))
The banks in India are operating through 55530 branches. All the banks together had the
net worth of Rs. 149385 crores as on 31st March, 2005. The banks also had the depositbase of Rs. 1836985 crores and the advances of Rs. 1151113 crores taking the total
business to Rs. 2988098 crores. During the year 2004-05 the banks had earned the
interest income of Rs. 154761 crores. The average net NPA ratio of the banks was alsoless 3.84% in year 2005.
Future is bright:
The Information Technology (IT) is becoming an important component of the banking
sector. The customers have become more demanding and they need value added servicesfrom the banks. The foreign banks have raised the expectations of the customers causing
the bank to invest strongly on IT. The Indian banks have started to meet the expectations
of the people by opening both onsite and offsite ATMs. Banks have also startedtelebanking, anytime/anywhere banking, mobile banking and Internet banking to give the
facilities to the customers. Banks have also following the RBI sponsored technology
programmes like mail messaging, Electronic fund transfers (EFT), Structured Financial
Messaging System (SFMS), (Real Time Gross Settlement (RTGS), Centralized FundManagement System (CFMS) and Negotiated Dealing System / Public Debt Office
(NDS/PDO).
Banks have been given more teeth to tackle the Non performing assets by passing the
Securitisation and Reconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002. Under this Act, the banks can take over the assets of the defaulters
either by themselves or with the help of Court. The power is in addition to the power to
recover through the Debt Recovery Tribunal. The Asset Reconstruction Companies havebeen formed which also take over the distress assets from the banks.
Conclusive Remarks
Banking Sector in India is likely to undergo a major change. This change will be in the
form of mergers and acquisitions and takeovers. The State Bank of India may merge allits associate banks with itself to make a one bank. The banks based in South India may
look for a bank in North India to have presence in North. Similarly banks in North may
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look for banks in South to increase its area of operations. Consolidation will be the key to
the banking sector in future.
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NON-BANKING FINANCIAL COMPANIES
NEED FOR REGISTRATION
Section 45-IA of the Reserve Bank of India Act, 1934 provides that No
non-banking financial company shall commence or carry on business of
a non-banking financial institution without
( a) obt ai ni ng a cer ti fi ca te o f r eg is tr at ion i s sued under Chap te r
IIIB; and
(b) having the net owned fund of twenty- f ive lakh rupees or such
other amount, not exceeding two hundred lakh rupees, as the
Bank may, by notification in the Official Gazette, specify.
Reserve Bank of India vide its PRESS RELEASE dated 8 th April 1999
has announced that in order to ident i fy a part icular company as a
non-baking financial company (NBFC), it will consider both, the assets
and the income pat tern as evidenced from the last audi ted balance
sheet of the company to decide i ts principal business . The company
wil l be treated as an NBFC if i ts f inancial assets are more than 50 per
cent of i t s total assets (net ted of f by intangible assets) and income
from f inancial assets should be more than 50 per cent of the gross
income. Both these tests are required to be satisf ied as the determinant
factor for principal business of a company.
Reserve Bank of India vide i t s Notification No. DNBS 132 / CGM
(VSNM) 99, dated 20/04/1999 has increased the requirement of net
owned fund f rom Rs .25 l akh to Rs .200 Lakh for the NBFC which
commences business of a non-banking financial inst i tut ion on or after
April 21, 1999.
Meaning of Business of a non-banking financial institution
Section 45-I(a) of the Reserve Bank of India Act, 1934
business of a non-banking financial inst i tut ion means carrying on of
the business of a f inancial ins t i tut ion refer red to in clause (c) and
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includes business of a non-banking f inancial company refer red to in
clause (f);
Meaning of Financial Institution
Section 45-I(c) of the Reserve Bank of India Act, 1934
financial institution means any non-banking institution which carries
on as its business or part of its business any of the following activities,
namely:-
( i) the f inancing, whether by way of making loans or advances or
otherwise, of any activity other than its own;
(ii) the a cquisition o f s hares, s tock, b onds, d ebentures o r
secur i t ies i ssued by a Government or local author i ty or other
marketable securities of a like nature;
(iii) letting o r delivering o f any g oods to a hirer u nder a
hire- purchase agreement as defined in clause (c) of section 2 of
the Hire Purchase Act, 1972 (26 of 1972);
( iv ) t he c ar ryi ng o n o f a ny c la ss o f in su ra nc e b us in ess ;
(v)managing, conducting or supervising, as foreman, agent or in
any other capacity, of chits or kuries as defined in any law which
is for the time being in force in any State, or any business, which
is similar thereto;
(vi) collecting, for a ny purpose or u nder any scheme or
ar rangement by whatever name cal led, monies in lump sum or
otherwise, by way of subscriptions or by sale of units , or other
instruments or in any other manner and awarding prizes or gif ts ,
whether in cash or kind, or disbursing monies in any other way,
to persons f rom whom monies are coll ec ted or to any o ther
person,
but does not inc lude any ins ti tu t ion , which carr ies on as i ts
principal business
(a) a gricu ltu ra l op eration s; o r
( aa ) i ndus tr ia l act iv it y; o r
(b) the purchase or sa le of any goods (other than secur it ies)
or the providing of any services; or
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(c) the purchase, construction or sale of immovable
property, so, however, that no port ion of the income of
t he i ns ti tu tio n is d er iv ed f ro m th e f in an ci ng o f
p ur ch as es , c on st ru cti on s o r s ale s o f i mm ov ab le
property by other pe rsons;
Explanation- For the purposes of this clause, "industr ial activity"
means any activity specif ied in sub-clauses ( i) to (xvii i) of clause
(c) of sect ion 2 of the Indust r ial Development Bank of India Act ,
1964 (18 of 1964).
Meaning of NBFC
Section 45-I(f) of Reserve Bank of India Act, 1934
non-banking financial company means
( i) a f inancial inst i tution which is a company;
(ii) a non-banking institution which is a company and
which has as i t s pr incipal business the receiving of deposi ts ,
under any scheme or a r rangement or in any o ther manner , or
leading in any manner;
(iii) such other non-banking institution or class of such
insti tut ions, as the Bank may, with the previous approval of the
Central Government and by notif ication in the Official Gazette,
specify.
EFFECT OF NON-REGISTRATION
Sub-sect ion (4A) of Sect ion 58B of the Reserve Bank of India Act ,
1934 provides
If any person contravenes the provisions of sub-section (1) of section
45-IA, he shall be punishable with imprisonment for a term which shall
not be less than one year but which may extend to f ive years and with
fine which shall not be less than one lakh rupees but which may extend
to five lakh rupees.
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Section 58C provides as follows
(1)Where a person committ ing a contravention or default referred to
in section 58B is a company, every person who at the time the
contravention or default was committed, was incharge of, and
was r es pons ib le t o, t he company f or t he conduct o f t he
business of the company, as wel l as the company, shal l be
deemed to be guil ty of the contravention or default and shall
be liable to be proceeded against and punished accordingly:
Provided tha t noth ing contained in thi s sub-sec tion shal l
render any such person l iable to punishment if he proves that
t he con tr aven ti on o r def au lt was commi tt ed wit hout h is
knowl edge o r t ha t he had exe rc is ed a ll due d il igence t o
prevent the contravention or default.
(2) Notwiths tanding anything contained in sub-sec tion (1), where
an offence under this Act has been committed by a company
and it is proved that the same was committed with the consent
or connivance of, or is at tr ibutable to any neglect on the part
of, any d irec tor , manager , secre tary, or o ther of fi cer or
employee of the company, such director , manager, secretary,
other officer or employee shall also be deemed to be guil ty of
the offence and shal l be l iable to be proceeded agains t andpunished acco rdingly."
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COMPLIANCES FOR NBFC
Under Particular Frequency Applicability
Under Reserve Bank of India Act, 1934
Section
45-IA
NBFC have to make
appl ica tion for r egis tr at ion
with RBI and shall not
commence or carry on
bus ines s o f a non-banki ng
f inancial ins ti tut ion wi thoutobta in ing regi st ra tion f rom
RBI and maintaining NOF.
NOF requirement for NBFC
registered
Before 21/04/1999 =
Rs.25 lacs
On or af ter 21/04/1999 =
Rs.200 lacs
One time All NBFC
Section45-IB
Maintenance of percentageof assets
Invest and continue to invest
5% to 25% (specified by RBI)
of deposits outstanding on the
last working day of the
second preceding quar ter in
unencumbered approved
securities.
Notification No.
D FC .1 21 /E D( G) -9 8 d ate d
31.01.1998 and No.
DFC(COC) NO.108-ED(JRP)-
97 dated 30.04.1997
Ongoing NBFC accepting/ holding Public
Deposit
Section Reserve Fund Yearly All NBFC
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45-IC Every NBF C s ha ll c reat e a
rese rve fun d an d tra nsfe r
t he re in a s um not l es s t han
20% of i ts net p ro fi t eve ry
year as disclosed in the profi tand loss account and before
any dividend is declared.
Section
45-M
Du ty o f NB FC t o f urn is h
statements etc., required by
Bank
When asked
for
All NBFC
Under Non-Banking Financial Companies Acceptance of Public
Deposit (Reserve Bank) Directions, 1998
Notification No.DFC.118/DG(SPT)-98 dated 31.01.1998
Para 4 Minimum Credit Rating,
Prohibi t ion on acceptance of
Deposit, repayable on
demand, P er iod o f Depos it
(12 to 60 Months only),
Ceiling on quantum of
deposi ts (depends on s tatus ,
rat ing, etc.) , Status in case ofDowngrading of credit rat ing,
Re gu larisatio n o f Pu blic
D ep os it a cc ep te d e ar li er ,
Ceil ing on the rate of interest
(max 11%), Payment of
Brokerage, etc.
ongoing
All NBFC
Not appl icable
subject to
1) not
accepting
Public
Deposit
2) passed a
resolution
u nd er p ar a
9
Para
4A, 4B
Branches, agents, closures of
branches
Para 5 Information to be included in
the Boards report
e .g . to ta l no . of accounts of
public deposi t, total amount
due or unpaid, etc.
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Para 6 S af e c us to dy o f a pp ro ve d
securities
Para 7 Employee Security Deposit
Para 8 Copies of ba lance sheet and
account s t oget he r w it h t heDirec tor s r eport , audi tors
r ep or t, n ote s o n a cc ou nt s,
returns in Form NBS 1 and
int imation of any change in
address , di rectors , pr incipal
officers, specimen signatures
etc should be furnished to the
Reserve Bank within 30 days
of the occurrence of event.Para 9 Non-applicability of
Direct ion to cer tain types of
NBFC
a) Insurance company
b) Loan company, an
in ve st me nt c om pa ny , a
hi re purchase company or
equipment leasing
company not hol di ng o r
accept ing public deposi ts
and pas s a r es ol ut ion t o
the ef fect within 30 days
of the commencement of
the financial year
c) An in ve stme nt c omp an y
( inves ting only in group
compani es not l es s t han
90% of its assets) and pass
a r esolu tion that has not
a cc ep te d a nd w ou ld n ot
accept Public Deposit and
would not t rade i n s uch
shares / securi ti es within
Every year
within 30 days
from the
commencement
of financial
year
All NBFC,
which wants to
claim
exemptions
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30 days of the
commencement of the
financial year.
Under Non-Banking Financial Companies Prudential Norms (ReserveBank) Directions, 1998
Notification No.DFC.119/DG(SPT)-98 dated 31.01.1998
Para 3,
4, 5, 6
Income recognition
I ncome f rom NPA s ha ll be
recognized only when
actually realised. All
unr ea li sed i ncome on NPA
shall be reversed.
Ongoing All NBFC
Income from investment
Div idend i ncome on s ha res
and uni ts o f Mut ua l F unds
shall be taken on cash basis.
Income from Bonds and
Debentures from Govt.
S ecur it ie s may be t aken on
accrual basis.
Income from securities(guaranteed by Central Govt.
or State Govt . ) may be taken
on accrual basis.
Accounting Standards
Accounting standards shall be
followed
Accounting of investment
Board of Directors shall
frame investment policy
Other requirement regarding
accounting of investment
Para
6A
Need for Policy on Demand /
Call Loans
Policy for demand / call loan
Ongoing All NBFC
giving loan etc.
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shall be framed
Para 7,
8, 9
Asset classification
Assets shall be class i fied as
Standard, Sub-standard,
Doubtful and Loss assets.
Ongoing All NBFC
Provisioning requirements
Prov isio n fo r a ssets (i.e .
loans, advances or other
c redi t f ac il it ie s i nc ludi ng
bills purchased & discounted,
Leased and h ir e pur chas ed
assets) shall be made
Ongoing
Disclosure in the Balance
SheetProvision as in para 8 should
be disclosed wi thout net ting
off
Yearly
Para
9A
Constitution of Audit
Committee
C om pa ny h av in g a ss ets o f
Rs.50 crore and above shall
constitute an Audit
Committee.
Ongoing NBFC having
assets of Rs.50
crore and above
Para
9B,
9BB
Accounting Year
Every NBFC shall prepare i ts
B/S and P/L as on 31 s t March
Yearly All NBFC
S ch ed ul e to t he Ba lan ce
Sheet
Every NBFC shall append to
its B/S particulars in the
format as set in schedule
Para
9C
Transaction in Government
Securities
NBFC shall hold investment
in approved securities in a
dematerialised form only.
Ongoing All NBFC
Para Requirement as to Capital Ongoing NBFC accepting
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10 adequacy
NBFC shall maintain
minimum capital ratio
/ holding Public
Deposit
Para
11
Loan aga inst NBFCs own
shares prohibitedNo loan again st own shares
shall be given
Ongoing All NBFC
Para
11A
NBFC failing to repay
public depos it prohibi ted
from making loans and
investments
As long as
default exists
NBFC ac cepting
/ holding public
deposit
Para
11B
Restrict ions on investment
in l an d a nd b ui ld in g a ndunquoted shares
Restriction has been specified
(10% of NOF)
Ongoing NBFC accepting
/ holding publicdeposit
Para
12
C on ce nt ra tion o f c re di t /
investment
Restriction has been specified
(Lend or invest to single
person 15% and group 25%)
(Both lend and invest 25%
and 40% respectively)
Ongoing NBFC accepting
/ holding Public
Deposits
Para
13
Submiss ion o f hal f-year ly
return
Half yearly return in Form
NBS-2 to be submitted
Half Yealy NBFC accepting
/ holding Public
Deposit and
RNBFC
Para
13A
Infor ma tion in r eg ar d t o
change of address,
directors, auditors,
Principal officer, etc. to be
sub mi tt ed b y N BF C s n ot
a cc ep ting /h olding p ub li c
deposit
Within 30 days from the date
of occurrence of any change
Whenever
change occur
All NBFC
-
8/7/2019 Disha Neha Doc
20/20
Para
13B
Exposure to Capital Market
Quarterly return in Form
NBS-6
Quarterly NBFC holding
public d eposit
of Rs.50 crore
or more and
RNBFC havingliabilities of
Rs.50 crores or
more
Para
13C
Norms relating to
Infrastructure Loan
Restructuring of
Infrastructure Loan.
All NBFC
giving
Infrastructure
Loan
Under various Notification / Press release issued by Reserve Bank
Circular No. DNBS (DD)
CC.No. 15/02.01/2000-01
dated 27/06/2001
Asset Liability
Management (ALM) System
Ongoing All NBFC
having assets
more than
Rs.100 crores
Notification No. RBI/2005-
06/157 dated 6 t h September
2005Monthly return on important
financial parameters on
NBFC not accepting / holding
public deposits and having
assets size of Rs.100 crores
and above
Monthly All NBFC
having assets
more thanRs.100 crores