Question
Which of the following statement(s) about NBFCs is incorrect?
Read the following passage and answer the next 4 questions Reserve Bank of India has been regulating the financial activities of the Non-Banking Financial Companies under the provisions of Chapter III B of the Reserve Bank of India Act, 1934. With the amendment of the Reserve Bank of India Act, 1934 in January 1997, in terms of Section 45 IA of the said Act, and amendment of the National Housing Bank Act, 1987 in August 2019, in terms of Section 29 A of the National Housing Bank Act, 1987, all Non-Banking Financial Companies including Housing Finance Companies have to be mandatorily registered with the Reserve Bank of India. The credit-related matters of banks have been progressively deregulated by the Reserve Bank of India. Consistent with the policy of bestowing greater operational freedom to banks in the matter of credit dispensation and in the context of mandatory registration of NBFCs with the Reserve Bank, most of the aspects relating to the financing of NBFCs by banks have also been deregulated
The glide path will not be applicable to NBFCs which are already required to follow the 90-day NPA norm. · There shall be a ceiling of Rs.1 crore per borrower for financing subscription to Initial Public Offer (IPO). NBFCs can fix more conservative limits. Please refer to the Circular RBI/2021-22/112 DOR.CRE.REC.No.60/03.10.001/2021-22 dated 12.10.2021 for more details (also refer to notes on NBFCs) More Banking System in India Questions
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