Question
According to the RBI approval granted to Bharti
Airtel’s subsidiary Airtel Money, under which category was the company registered as a Non-Banking Financial Company?Solution
Bharti Airtel’s subsidiary Airtel Money received a Certificate of Registration from the Reserve Bank of India allowing it to operate as a Type II Non-Deposit Accepting Non-Banking Financial Company classified as NBFC-ND (ICC). This category allows the entity to function as a non-banking financial institution while prohibiting it from accepting public deposits. The registration was issued under Section 45-IA of the RBI Act, 1934. As a non-deposit accepting NBFC, the company must comply with regulatory conditions prescribed by the RBI for financial operations and reporting.
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