The scheme will come into effect from June 1, 2015. The bank customers can
join the scheme from June 1, 2015 to May 31, 2016.
The Reserve Bank of India (RBI) plans tougher rules for
takeovers involving non-banking financial companies (NBFCs), according to
draft guidelines published on Monday, outlining a demand that all
substantial deals seek its prior approval.
In its latest effort to boost transparency and strengthen
its grip on the alternative lenders that account for a large part of the
domestic shadow-banking sector, the RBI said any purchase of a stake of 26
per cent or more in a company, or a change in more than 30 per cent of its
directors, would need the central bank’s permission.
“The RBI has been continuously trying to strengthen this
sector so that this should not be a back yard for people we don’t know,’’
said Sanjay Agarwal, Managing Director of Au Financiers (India), an NBFC
There are some 12,000 NBFCs registered with the RBI, and
they largely offer loans. Some, like traditional banks, also take deposits.
The RBI also said in its circular that the source of
funds behind new investors in any NBFC will have to be disclosed. It also
asked for an undertaking that the new proposed investors are not associated
with any existing but unregistered body that accepts public deposits.
NBFCs play a critical role in extending credit to areas
where traditional finance cannot reach in a country where only just over
half of the population has access to the mainstream banking system. However,
controlling these NBFCs has been made a key priority for the RBI, given
their size and reach.