The Reserve Bank of India on Thursday issued master directions on six subjects relating to non-banking financial companies (NBFCs) under its regulation. This includes directions for exemptions from provision of the RBI Act, NBFC acceptance of public deposits, core investment companies (CICs), standalone primary dealers, miscellaneous and residuary NBFCs.
"These directions consolidate and reorganise instructions issued in various circulars, directions, notifications and master circulars. The six master directions replace instructions contained in existing master circulars," the central bank said in a release.
The subjects on which Master Directions have been issued are:
i. Exemptions from the provisions of RBI Act, 1934, vide DNBR.PD.001/03.10.119/2016-17
ii. Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016, vide DNBR.PD.002/03.10.119/2016-17
iii. Core Investment Companies (Reserve Bank) Directions, 2016, vide DNBR.PD.003/03.10.119/2016-17
iv. Standalone Primary Dealers (Reserve Bank) Directions, 2016, vide DNBR. PD. 004 /03.10.119/2016-17
v. Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 2016, vide DNBR.PD.005/03.10.119/2016-17
vi. Residuary Non-Banking Companies (Reserve Bank) Directions, 2016, vide DNBR.PD.006/03.10.119/2016-17
In order to streamline compliance in pursuance of the decision announced in the fourth bi-monthly monetary policy statement on 29 September 2015, RBI has started issuing master directions on all regulatory matters from January 2016.
The master directions consolidate instructions on rules and regulations framed by the Reserve Bank under various Acts including issues related to non-banking financial companies. Any change in the rules, regulation or policy is communicated during the year by way of circulars or press releases.
The master directions will be updated suitably and simultaneously whenever there is a change in the rules and regulations or there is a change in the policy. Explanations of rules and regulations will be issued by way of frequently asked questions (FAQs) after issue of the master directions in easy to understand language wherever necessary, the RBI added.