Rbi Issues Fresh Ultimatum To Nbfcs

The Reserve Bank of India has threatened non-banking finance companies (NBFCs) with a bar on accepting deposits from the public and suspension of business activities unless they apply for registration by July 8, 1997.

This is the first time that the Reserve Bank has stated that it will suspend the business of NBFCs unless they apply for registration.

The Reserve Bank had earlier stipulated that even registered NBFCs should apply for registration, but had stated that suitable action will be taken against them if they do not apply for registration by July 8, 1997. With the NBFC scam affecting three companies totally