The Reserve Bank of India (RBI) is planning to form a self regulatory organisation (SRO) for non-banking financial companies (NBFCs). The central bank, in its mid-term review of macroeconomic and monetary developments, has mentioned that it is working out the modalities for formation of the SRO, in consultation with the associations of NBFCs.
However, some of the NBFCs are of the view that along with the formation of the SRO, the RBI should make it mandatory for all the registered NBFCs to be members of it.
Mahesh Thakkar, executive director of Association of Leasing and Financial Services Cos, said, "Unless it is made mandatory for all the registered companies to be members of SRO, mere formation of it does not make any sense."
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The apex bank had already circulated the draft guidelines for asset liability management and formats of separate balance sheet for NBFCs among the members of informal advisory group on NBFCs for the views of industry.
The RBI had, so far, approved registration of 702 deposit-taking and 9,857 non-deposit taking NBFCs, out of a total of 37,212 applicants.
Earlier, the central bank had fixed January 10 as the deadline for attainment of minimum stipulated level of net owned fund (NOF) of Rs 25 lakh on January 10, 2000.
Though 8,027 companies have already attained the minimum NOF level, another 2,207 companies have applied for the extension of the deadline.
According the RBI's mid-term review of macroeconomic and monetary developments, the central bank is engaged in processing applications of such NBFCs according to the merits of each individual company.
However, the RBI has so far cancelled 15,727 applications on the grounds of not fulfilling the minimum criterion of registration.
However, most of the banks have complaints against the credit policy.
An official at a leading NBFC said, "No positive steps have been taken by the RBI for the development of NBFCs. The bank is quite unmindful regarding the areas in which NBFCs have comparative advantage."