TOPIC 24: QUICK REFERENCE TO “Important Features of NBFCs w.r.t. Depositors”

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Quick Reference to " Important Features of NBFCs w.r.t. Depositors " :-..
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1. NBFCs can accept/ renew public deposits for min. 1 year & max 5 year.
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2. Deposits repayable on demand is not allowed.
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3. Max. Interest rate is of 12.5% which can be paid by NBFCs to Depositors.
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4. Deposits of NBFCs are not insured.
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5. NBFCs are not allowed to offer gift to the Depositors.
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6. NBFCs cannot offer Incentives and additional benefit to Depositors.
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7. Minimum Credit Rating is mandatory for NBFCs.
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8. Repayment of Deposit by NBFCs are not guaranteed by RBI.
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9. CoR i.e. Certificate of Registration issued by RBI sould be posted by NBFC on its website.
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10. Generally, if there is default in repayment of Deposit by NBFCs then Depositor can apply to Consumer forum or Civil suit in court of law.
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11. There is no Ombudsman for hearing Complaint against NBFCs.
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12. Partnership and Proprietary concerns are prohibited under RBI Act, 1934 for Accepting Deposits.
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Regards
ACA SOURAV BAGARIA