RBI has issued new rules for the big non-banking financial companies of the country. These rules will have a direct impact on your pocket. Let’s know how it will affect the common man.
RBI has issued strict rules for non-banking finance ie NBFC companies. After the implementation of these rules, it will be known clearly how is the position of NFBC company. After the implementation of In Prompt Corrective Action (PCA) rules, the NBFC company will be tested on 3 different parameters. Let’s know about it.
According to this rule, now after failing on the first parameter, the Reserve Bank can stop the dividend distribution of NBFCs. Not only this, promoters can also be asked by RBI to put money.
At the same time, failing on the second parameter, the RBI can ban the company from opening new branches and can also stop business expansion. At the same time, after failing on the third parameter, the Reserve Bank can stop the business till the health of the NBFC company recovers.
When will the rules come into force?
Let us tell you that after the implementation of the new rules, the Reserve Bank will exclude the NBFC company from the category of PCA only if it feels that the company is fit to do business. These new and strict rules will be applicable from October this year. Experts believe that this move of the Reserve Bank will improve the condition of the NGFC sector.
Experts also believe that these rules will prove beneficial for the sector. In fact, in the last 3 years, many malpractices have come to the fore in 4 big NBFC companies. After the implementation of this rule, it is expected that there will be improvement in this sector. RBI has also issued these rules with the same expectation.
