Cancellation of registration with rbi
Madhu Mittal
(Querist) 11 November 2014
This query is : Resolved
Respected Sirs,
Before 1997, there was no requirement of net owned fund(NOF) for Non banking finance companies(NBFCs) as per Reserve bank of India(RBI), afterwards it was asked to NBFCs’ by RBI to increase their NOF at least upto Rs. 25 lacs upto January 2000. Now on 10.11.2014, it was again asked to increase their NOF upto Rs. One crore by 31.3.2016 and upto Rs. Two crore by 31.3.2017 otherwire their registration with RBI will be cancelled. Now the NBFCs which are not in a position to raise their NOF upto two crore are going to be cancelled their licence as NBFCs. Is it not against the natural justice to tell existing NBFCs to shut their business without their fault? Please let me know if any remedy.
Devajyoti Barman
(Expert) 11 November 2014
Professional query.
Hire the service of a lawyer.
Rajendra K Goyal
(Expert) 11 November 2014
Valid orders from regulator in its legal capacity has to be followed till challenged and reversed by competent authority.
Kumar Doab
(Expert) 11 November 2014
It is a sensitive matter.
As suggested by Mr. Barman avail the services of a lawyer.
Affected NBFC may unite and represent to Regulator and Ministry.
ajay sethi
(Expert) 12 November 2014
make representation to RBI in this regard that revised guidelines will affect existing NBFC adversely .
T. Kalaiselvan, Advocate
(Expert) 16 November 2014
This is a policy matter by RBI which is applicable to all NBFCs across the length and breadth of the country, you can gather the like minded company's and make a collective representation to RBI and the Central government (Finance Minister) venting out your grievances due to this change in the policy and get the information. Legal course of action by an individual NBFC will not yield any result.
