The firms incorporated under the Companies Act 2013 as the public or private limited company having objective of financial activity are known as NBFC or Non-Banking Financial Companies. NBFCs offer banking services without having met the legal banking concept. Under RBI Act Section 451(c), a Non-Banking Company carrying on a Financial Institution business would be an NBFC. It is regulated by both the Ministry of Corporate Affairs and the Bank of India Reserve.
NBFC plays an important role in the Indian economy. NBFCs would have access to lower-cost deposits and increased funding once they are transformed into banks
a. After conversion institution will able to accepts
b. After conversion institutions will able to draw cheques, DD.
c. Deposit Insurance and Credit Assurance Company Insurance Service
➲ Minimum paid-up capital for a new bank is Rs.200 Crore. The initial capital is increased to Rs.300 crore within three years of the start of business.
➲ The total contribution of the promoters shall be 40 percent of the bank's paid-up money.
➲ The initial money, other than the contribution of the promoters, can be provided by way of public or private placements.
➲ While capital grows to Rs.300 crore within three years of company start-up, promoters would have to collect additional money, which will amount to at least 40 percent of the fresh money generated.
➲ The capital shall be locked in for a term of at least 5 years from the date of receipt of capital by the bank.
➲ A industrial house will not be funded to the new bank. Nevertheless, individual companies that are directly or indirectly connected to large industrial houses can be allowed to invest in the equity of a new private sector bank up to a limit of 10 percent that would not have managed interest in the bank.
➲ The proposed bank shall maintain an arm's length relationship with the promoter group's business entities and the individual company / is investing up to 10 percent of the shareholdings as provided for.
➲ The relationship between the promoter group's business entities and the proposed bank shall be like that between two separate and unconnected entities.
➲ The bank shall maintain on a continuous basis a minimum capital adequacy ratio of 10 percent.
➲ As applicable to other domestic banks, the new bank would have to experience a priority sector lending target of 40% of net bank credit.
➲ The new bank would be expected to open 25 percent of its rural and semi-urban branches.
➲ The formation of a subsidiary or mutual fund shall not be allowed by the new bank for at least three years from the start of the company.
➲ The proposed new bank's headquarters could be at any place in India, as the promoters have agreed.
➲ The new bank shall be regulated by the provisions of the Banking Regulation Act, 1949, Reserve Bank of India Act, 1934, other relevant statutes and SEBI regulations on public matters and other guidelines relevant to the banks listed.
➲ The report is completed and filed in the required manner.
➲ The applications shall be followed by a project report covering the proposed bank's market potential and feasibility, market emphasis, product lines, technology capabilities, and other relevant details.
➲ Detailed information on the history of promoters, their experience, the business and financial value track record, details of the direct and indirect interests of promoters in various companies/industries, details of the proposed participation by foreign banks / NRI / OCB shall be given.
➲ Licenses will be given on a selective basis to those who comply with RBI's specified criteria and who are likely to comply with the best international and domestic customer service and efficiency standards.
➲ The same shall be screened by RBI after receiving an application to ensure prima facie eligibility of the applicants and referred to a high-level advisory committee to be set up by RBI
➲ The Committee must review applications according to the protocol they have set up.
➲ RBI will take the decision to grant in-principle approval for the establishment of a bank which will be final.
➲ The approval issued by RBI in principle is valid for a period of one year from the date of grant of the approval in principle and will then automatically lapse.
➲ After RBI has granted the approval in principle for the establishment of a bank in the private sector if any other features are subsequently noted with regard to the promoters or the companies/companies with which the promoters are affiliated and the community in which they are involved, the Reserve Bank of India may impose additional conditions and, if necessary, may withdraw the approval in principle
We share the detailed and reasonable estimated costs, documents and prerequisites for the complete process before starting the process to ensure transparency.
Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.
Upon collecting the necessary documents and information, we waste no time in preparation and filing of your application. development on your application is brought to your attention.
On successful completion of the case we share all the relevant documents electronically and physically along with an assurance to pay you back if something is wrong.
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all businesses accepting, processing, storing or transmitting credit card information maintain a safe environment.
A company which has the object of cultivating the habit of thrift & savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Govt.
Registration of NBFC's may be cancelled by the RBI for not conducting business in the manner specified in the respective statutes or due to any non-compliance. However, in certain circumstances, it is possible to apply for the revival of the NBFC whose li
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 of India, the main operations of NBFC include loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance or chit-fund, but they do not inclu
An authorized company that is authorized to purchased foreign exchange from non-residents visiting India & residents & to sell foreign exchange for private & business travel purposes only is Known as Full fledged money changer (FFMC).
Payment services operated under financial regulation and performed from or via mobile is known as Mobile payment wallet. Mobile payment wallet also referred to as mobile money, mobile money transfer and mobile wallet.
An asset Reconstruction Company is a Company engaged in the business of buying bad loan from bank. These are specialized financial institutions that buys the bad loan, Non Performing Assets (NPAs) from banks & financial institution so that to clean up the
The firms incorporated under the Companies Act 2013 as the public or private limited company having objective of financial activity are known as NBFC or Non-Banking Financial Companies.
An autonomous group of people belonging to the same class willingly comes together to strive to be common economic, social and cultural objectives and criteria through a business that is jointly owned and democratically controlled by such citizens.
Catch comprehensive services for Mutual Fund Registration in India with our expert guidance. Navigate SEBI regulations seamlessly, establish your AMC, and unlock investment opportunities. Start now!
Our guide to Alternative Investment Fund (AIF) registration provides an in-depth look into the world of AIFs. We cover all three categories of AIFs - Category I, II, and III, each with its unique focus and benefits. From venture capital funds to hedge fun
CorpZo guides you through Depository Participants Registration, outlining the role, benefits, and eligibility of a DP. Learn about SEBI, NSDL, and CDSL regulations with us.
A Collective Investment Scheme (CIS), is an investment scheme in which several individuals come together to pool their money to invest in a particular asset(s) with the motive to share the returns derived from the said investment in accordance with the ag
The SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) also apply to AIFs in the IFSC. The "SEBI" published Operating Guidelines for Alternative Investment Funds in International Financial Services Centres on November 26, 2018 "
An establishment in form of trust or institutions that records and maintains a complete record of transactions of investors for the benefit or convenience of mutual funds houses or listed entities are called as share transfer agents.
Merchant banker is a company and is combination of consultancy and banking services. Activities of merchant banker in India are regulated by SEBI (merchant banker) rule 1992.
Get the competitive edge in the digital payment landscape with Corpzo's expert guidance on obtaining the payment aggregator license in India. We help streamline your payment aggregation services while ensuring compliance with RBI guidelines. Unlock new op
A service providing entities which plays role of intermediate between banks and websites facilitating the communication of transaction information are known as payment gateway.
Organization which is registered under companies act 2013 or 1956 and which facilitate financing activity such as loan, savings, and insurance to the needy people or to those who are incapable of getting loan from banks and other financial institutions d
An Infrastructure Investment Trust (InvIT) is a collective investment scheme, similar to a mutual fund, that allows individual and institutional investors to invest directly in infrastructure projects in exchange for a small percentage of the income as a
CorpZo's services are designed to help businesses navigate the complex process of becoming a Third Party Application Provider within the UPI ecosystem. We ensure compliance with NPCI's SOPs, including adherence to market share cap regulations, and provide
Uniquely repurpose strategic core competencies with progressive content. Assertively transition ethical imperatives and collaborative manufactured products.Write About Us
© 2023 Corpzo Ventures Private Limited.