>>NON-BANKING FINANCE COS. - ACCEPTANCE OF PUBLIC
DEPOSITS
The Reserve Bank of India, having considered it necessary in the
public interest and being satisfied that for the purpose of enabling the Bank
to regulate the credit system to the advantage of the country, it is necessary
to amend the Non-Banking Financial Companies Acceptance of Public Deposit
(Reserve Bank) Directions, 1998, in exercise of the powers conferred by
sections 45J, 45K, 45L and 45MA of the Reserve Bank of India Act, 1934 (2 of
1934) and of all the powers enabling it in this behalf, hereby directs that the
said directions contained in Notification No.DFC.118/DG(SPT)/98 dated January
31,1998 stand amended, with immediate effect, as follows, namely –
1. In paragraph 2, in sub-paragraph (1), in clause (xii), the existing
sub-clauses after sub-clause (g) are re-numbered as (h) and (i) as under :
"(h) any amount
received from a Mutual Fund which is governed by the Securities and Exchange
Board of India (Mutual Funds) Regulations, 1996;
(i) any amount received
as hybrid debt or subordinated debt the minimum maturity period of which is not
less than sixty months;"
2. In paragraph 2, in sub-paragraph (1), in clause (xii), the
following new sub-clause shall be inserted, namely, -
"(j) any amount
received from a relative of a director of an NBFC"
Note : The deposit shall be
accepted only on an application made by the depositor containing therein that
as on the date of deposit, he is related to the specific director in the
capacity of a relative as defined under Companies Act, 1956 (1 of 1956)
3. First Schedule appended to the said Directions stands substituted
by Return NBS 1 appended hereto.
Sd/-
( V.S.N. Murty )
Chief General Manager-In-Charge
Encls : NBS-1