Supervision of NBFCs by RBI

Supervision of NBFCs by RBI

A Story by Websoftex
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Websoftex Software Private Limited, a Bangalore based Company, an authorized Software service provider engaged in Microfinance, Banking, Co-Operative, NBFC Softwares http://microfinancesoftware.net

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Supervision of NBFCs by Reserve Bank The supervisory framework for NBFCs is based on three criteria, viz.

(a) The size of NBFC, 

(b) The type of activity performed, and 

 (c) The acceptance or otherwise of public deposits. Towards this end, a four­pronged supervisory strategy comprising �" 

Onsite inspection based on CAMELS (capital, assets, management, earnings, liquidity, systems and procedures) methodology, computerised off­site surveillance through periodic control returns, 

(c) An effective market intelligence network, and 

(d) a system of submission of exception reports by auditors of NBFCs, has been put in place. 

The regulation and supervision is comprehensive for companies accepting or holding public deposits to ensure protection of interests of depositors. Companies holding or accepting public deposits are required to comply with all thedirections on acceptance of public deposits, prudential norms and liquid assets, and shouldsubmit periodic returns to the Reserve Bank. 

They are supervised using all the supervisory tools indicated above. Companies not holding or accepting public deposits are regulated and supervised in alimited manner. They are required to comply only with prudential norms relating to income recognition, accounting standards, asset classification and provisioning against bad and doubtful debts. 

They are less frequently inspected. Such companies are now required to submit a monthly return to the Reserve Bank.

© 2017 Websoftex


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Added on December 13, 2017
Last Updated on December 13, 2017
Tags: CRM Software Merchant Finance, Merchant Loan, Pawn Broker Software

Author

Websoftex
Websoftex

bangalore, Other, India



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Welcome to Websoftex Software Solutions Pvt. Ltd. a Bangalore based company extending its services in Website Designing, Web Development, MLM Software, Micro Finance, RD FD Software, Chit Fund, Loan S.. more..

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