1,000 Nbfcs May Close For Missing Funds Norm

The Reserve Bank of India (RBI) has directed non-banking finance companies (NBFC) that have net owned funds below the minimum stipulated Rs 25 lakh to shut shop following the expiry of a deadline today.

According to industry experts, around 1,000 NBFCs will have to close after this directive.

NBFCs that did not have the minimum net owned funds on January 9, 1997, were allowed to meet the requirement and carry on business for three years or till such time as specified by the RBI.

According to RBI