Madras High Court division bench rules in favour of RBI in NoF dispute

A division bench of the Madras High Court on Tuesday set aside a single judge's order related to the cancellation of registration of non-banking financial companies (NBFC) by the Reserve Bank of India (RBI) for failing to comply with the enhanced net owned fund (NOF) norms. The bench also directed the NBFCs to approach the appellate authority within a stipulated timeframe to raise their concerns.

The order was on an appeal filed by the RBI against the order passed by a single judge earlier this year. RBI had notified an enhanced NOF holding by all NBFCs on March 27, 2015,