Law and Practice of Non-Banking Financial Companies

Law and Practice of Non-Banking Financial Companies is an in-depth exposition of the regulatory framework for Non-Banking Financial Companies (NBFCs). The book provides a structured, critical and detailed commentary on the Master Directions-Reserve Bank of India (Non-Banking Financial Company -Scale Based Regulation) Directions, 2023 as also several other relevant directions, and circulars of the RBI for. From traditional lending products such as secured loans, gold loans, vehicle loans, loans against properties and loans against shares, it provides complete regulatory inputs on new-age products such as digital lending, BNPL, supply chain financing, factoring, loans against receivables and consumer credit.

Designed as an essential resource for practitioners, policymakers and students of law and regulations applicable to NBFCs, this treatise is enriched with years of practical experience of the authors as consultants to leading NBFCs. Where needed, the book looks at comparable global laws, Basel regulations or the law applicable to banks to get contextual meaning for the regulatory framework 

Key Features:

• Offers a comprehensive overview of RBI regulations for NBFCs, including the Scale-based Regulations, KYC Master Directions, Fraud Master Directions.
• Includes analysis of critical provision like MFI Directions, Information Technology Directions, Supervisory Returns, Digital Lending Guidelines, KFS Circular, etc. and explains concepts like customer interface, access to public funds and Annualised Percentage Rate.
• Each chapter aims to explain the practical application of regulations, supported by legal precedents and market practices, bridging the gap between theoretical understanding and practical implementation.
• Guidance on practical implementation for corporate governance, compliance systems and risk management.
• Comprehensive discussion on complex topics such as capital adequacy, including ICAAP, as well as liquidity risk management and asset-liability management.
• Elaborate comments on the typical concerns of the supervisor, such as risk classification for PMLA risk, fair lending practices, interest rate policy, etc.
• Compares the applicable RBI regulations with corresponding provisions from the Companies Act, Ind AS requirements, etc.
• Insights into the emerging trends in the financial sector and the evolving approach of the regulator for monitoring and regulating the NBFCs.