The Reserve Bank of India (RBI) has allowed deposit taking non-banking financial companies (NBFCs) to invest a part of their public deposits in fixed deposit schemes of Small Industries Development Bank of India (Sidbi) and National Bank for Agriculture and Rural Development (Nabard).
“The aggregate of the amount invested in unencumbered approved securities, term deposits and the bonds as aforesaid shall not be less than 15 per cent of public deposits,” a circular from the central bank said. However, the residuary non-banking companies (RNBCs) are kept outside the purview of this notification.
