Updates

The Master Direction – Residuary Non-Banking Companies (Reserve Bank) Directions, 2016 (updated as on February 22, 2019) provides a regulatory framework for Residuary Non-Banking Companies (RNBCs) in India. These guidelines establish norms on deposit acceptance, capital adequacy, repayment terms, and reporting requirements to ensure financial stability and protect depositor interests.

The Master Direction – Fit and Proper Criteria for Sponsors – Asset Reconstruction Companies (Reserve Bank) Directions, 2018, issued by the Reserve Bank of India, establishes comprehensive eligibility norms for existing and prospective sponsors of Asset Reconstruction Companies (ARCs). These guidelines assess factors such as the sponsor’s integrity, reputation, compliance history, financial stability, and governance practices to ensure that only qualified entities can promote or hold significant stakes in ARCs.

The Master Direction – Information Technology Framework for the NBFC Sector, issued by the Reserve Bank of India on June 8, 2017, provides a comprehensive IT governance framework for Non-Banking Financial Companies (NBFCs). It outlines guidelines on IT governance, policy, information and cyber security, IT operations, IS audit, business continuity planning, and IT services outsourcing to ensure the safety, security, and efficiency of IT processes within the sector.

The framework is divided into two sections: Section-A applies to systemically important NBFCs (with asset size above ₹500 crore), while Section-B provides recommendations for smaller NBFCs. NBFCs are required to conduct a gap analysis between their current IT practices and the stipulations laid out in the Master Direction and submit a time-bound action plan to address any gaps.

The Master Direction – Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016 provides a comprehensive framework for Non-Banking Financial Companies (NBFCs) to detect, report, and mitigate fraudulent activities. It outlines procedures for classifying frauds, reporting timelines, staff accountability, and coordination with law enforcement agencies to strengthen the integrity of the NBFC sector.

The Master Direction – Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2016 mandates auditors of NBFCs to furnish specific reports to the RBI, ensuring transparency and regulatory compliance. These directions aim to enhance the quality of financial reporting and facilitate effective supervision of NBFCs.

The Master Direction – Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016 outlines the regulatory framework for the submission of various returns by NBFCs to the Reserve Bank of India. These directions aim to ensure timely and accurate reporting, facilitating effective supervision and monitoring of the NBFC sector.

The Master Direction – Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 2016 provides a regulatory framework for miscellaneous non-banking companies (MNBCs) in India. It outlines guidelines on deposit acceptance, interest rates, repayment terms, and reporting requirements to ensure financial stability and protect depositor interests.