- The government on Tuesday said that the Reserve Bank will examine financials of 34,754 non-banking finance companies (NBFCs) to ascertain their eligibility.
- "It has been decided by RBI, that as a one-time measure, the financials of all these 34,754 companies (other than those registered with RBI) will be examined to ascertain their eligibility or otherwise for registration with RBI," Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha.
- "The main objective is to determine whether among these companies there are NBFCs that ought to have registered with the RBI for carrying on their NBFI (non-banking financial institution) activities,".
- The Ministry
of Corporate Affairs has recently forwarded a list of 34,754 companies which
are registered under the Companies Act, 1956 and classified or categorized as
NBFCs in the records of the Ministry.
- These companies may be carrying on NBFI activities without mandatory registration as required under Section 451A of RBI Act, 1934, as only 12,375 companies are registered with the RBI as NBFCs (as on February, 2013).
- Many of these companies are, however, not registered with the central bank as NBFCs and the RBI is ascertaining whether any of these companies are carrying out the business of an NBFC as defined by it