RBI notifies net owned fund for NBFCs to commence business

The Reserve Bank of India has specified ten crore rupees as net owned fund (NOF) required for following categories of non- banking financial companies to commence or carry on the business of non-banking financial institution from October 01, 2022:

(a) Non-banking financial company – Investment and Credit Company (NBFC-ICC);
(b) Non-banking financial company – Micro Finance Institution (NBFC-MFI);
(c) Non-banking financial company – Factor (NBFC-Factor).

Provided that the above categories of existing non-banking financial companies holding a certificate of registration as on October 22, 2021 issued by the Reserve Bank of India and having net owned fund of less than ten crore rupees, shall achieve the NOF of ₹10 crore as per the following glide path: