The Reserve Bank of India (RBI) today said that all non-banking finance companies (NBFC) will need the regulator’s prior approval to acquire or merge with similar entities. Earlier, only deposit taking NBFCs were required to have the central bank’s prior approval.
“The requirement is applicable to all NBFCs, irrespective of it being a deposit taking or a non-deposit taking NBFC,” RBI said in a statement.
The regulator also clarified RBI’s prior approval will not be required if a NBFC is acquiring less than 10% of another entity.
