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Who controls non-banking financial companies?

As per RBI Act 1934, Reserve Bank of India (RBI) has the powers to regulate and control the Non-Banking Financial Companies. As per RBI Act, RBI can exercise surveillance, supervise, inspect, issue directions, lay down policies and regulate the Non-Banking Financial Companies (NBFC’s). You can read about the Types of Non Banking Financial Institutions – Functions & Objectives in the given link.

If NBFC’s violate the directions or provision of the RBI, then the RBI has the power to penalize the NBFC’s. 

Further readings:

  1. NBFCs & IBC: RSTV – Big Picture Discussion on the RBI’s move to resolve NBFCs under insolvency law
  2. Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III]

Related Links

RBI – Reserve Bank of India [UPSC Indian Economy Notes]

Download Indian Economy Notes For UPSC Examination

Big Bank Reform RSTV – Recent mega-merger of national banks

Mission Indradhanush for PSBs – Revamping Public Sector Banks

Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19

Monetary Policy Committee – Objectives, Structure

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