Supervision of NBFCs by RBIA Story by WebsoftexWebsoftex Software Private Limited, a Bangalore based Company, an authorized Software service provider engaged in Microfinance, Banking, Co-Operative, NBFC Softwares http://microfinancesoftware.netSupervision 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 AuthorWebsoftexbangalore, Other, IndiaAboutWelcome 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..Writing
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