RBI harmonises different categories of NBFCs into one category NBFC Investment and Credit Company; effective 22nd February, 2019
The Reserve Bank of India (“RBI”) has issued a circular regarding Harmonisation of different categories of NBFCs on 22nd February, 2019.
To provide NBFCs with greater operational flexibility, harmonisation of different categories of NBFCs into fewer ones have been carried out based on the principle of regulation by activity rather than regulation by entity.
Therefore, the three categories of NBFCs Asset Finance Companies (AFC), Loan Companies (LCs) and Investment Companies(ICs) have been merged into one category called NBFC – Investment and Credit Company (NBFC-ICC).
Source: Reserve Bank of India