Rbi Cautions Nbfcs On Broker Incentives

The apex bank has also warned NBFCs against offering incentives to brokers in excess of the amounts stipulated by the it.

RBI has fixed the brokerage that can be offered, and NBFCs wanting to bypass this used to offer cash incentives under the pretext of reimbursement of actual expenses.

"NBFCs have been allowed to reimburse expenses incurred by a broker to the extent of 0.5 per cent of the deposits collected through him on the basis of vouchers/bills,'' an RBI circular dated September 26, written to finance companies mention.

However, the central bank will take a serious view of all those companies that continue to offer out of pocket incentives. Indicating this, the circular adds, "Any violation of the new expenses reimbursement norms will be viewed very seriously.