LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • India
    • Economy
    • Politics
    • Markets
  • World
    • Economy
    • Politics
    • Markets
  • Companies
    • Auto
    • Banking & Financial Services
    • Pharma
    • Energy
    • Infrastructure
    • Media
    • IT
    • Telecom
    • Consumer Products
    • Aviation
    • FMCG
  • Personal Finance
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
  • Mutual Funds
  • Technology
  • Automobile
    • Cars
    • Bikes
  • Small Business
    • SME
    • Startups
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
    • AUTHORS
Home » India News

NBFCs can go for insolvency resolution post-MCA notification

The RBI can now direct the resolution of NBFCs with assets worth at least Rs 500 crore under the insolvency law to help in addressing defaulting cases in the NBFC sector.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
NBFCs can go for insolvency resolution post-MCA notification
Significantly, the corporate insolvency resolution process for an FSP would be initiated "only on an application by the appropriate regulator". Photo: Reuters
Written By: IANS
Updated: Tue, Nov 19, 2019
08:25 am
New Delhi, IANS
RELATED NEWS
RBI repo rate cuts: What bank is expected to do in the remainder of FY20 RBI repo rate cuts: What bank is expected to do in the remainder of FY20
RBI did not object to electoral bonds through SBI: FM Nirmala Sitharaman RBI did not object to electoral bonds through SBI: FM Nirmala Sitharaman
Small Finance Banks alert! RBI issues these important guidelines - What SFBs must know Small Finance Banks alert! RBI issues these important guidelines - What SFBs must know
Your set-to-rise phone bills may add to inflation; What RBI Governor said Your set-to-rise phone bills may add to inflation; What RBI Governor said
RBI Policy Meet: Nifty, Sensex slip after repo rates stay unchanged RBI Policy Meet: Nifty, Sensex slip after repo rates stay unchanged

The Reserve Bank of India (RBI) can now direct resolution of non-banking financial companies (NBFCs) with assets worth at least Rs 500 crore under the insolvency law to help in addressing defaulting cases in the Non-Banking Financial Companies sector, according to a ministry of corporate affairs (MCA) notification.

"The insolvency resolution and liquidation proceedings of the categories of financial services providers (Non-banking finance companies which include housing finance companies) with asset size of Rs 500 crore or more, as per last audited balance sheet) of financial service providers shall be undertaken in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 with the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019", said the notification.

See Zee Business Live TV streaming below:

Earlier last week, On Friday, the ministry had notified the framework for dealing with systemically important financial service providers (FSPs), excluding banks, under the Code wherein sectoral regulators can seek resolution of stressed entities.

The introduction of the "generic framework" comes amidst the ongoing liquidity crisis in the NBFCs that has also sparked concerns about the overall stability of the financial sector.

Section 227 of the Code enables the central government to notify, in consultation with the financial sector regulators, FSPs or categories of FSPs for the purpose of insolvency and liquidation proceedings.

Significantly, the corporate insolvency resolution process for an FSP would be initiated "only on an application by the appropriate regulator".

"The rules shall apply to such FSPs or categories of FSPs, as will be notified by the central government under Section 227 from time to time in consultation with appropriate regulators, for the purpose of their insolvency and liquidation proceedings," the ministry said on Friday.

Corporate Affairs Minister Nirmala Sitharaman had said there would be something similar to the insolvency law for the financial sector and till that time but the new provision would take care of financial institutions.

"In an environment where it may be necessary to invoke something akin to Insolvency and Bankruptcy Code (IBC) and in the absence of IBC like provision for the financial services sector we have brought out this notification under Section 227 within the IBC which can be used. Post this, it is up to the RBI to take a call on this."Whether we will have something equivalent to IBC for financial sector, we will address that in future. We want to bring something equivalent to IBC for the financial sector. Till such time, this will take care of financial institutions," she said.

TAGS:
Reserve Bank of IndiaNBFCBanking
Next Article

NEXT STORY: Earthquake in India today: Gujarat Quake spreads panic! 4.3 magnitude quake hits Bhachau in Kutch district

RELATED NEWS
RBI repo rate cuts: What bank is expected to do in the remainder of FY20 RBI repo rate cuts: What bank is expected to do in the remainder of FY20
RBI did not object to electoral bonds through SBI: FM Nirmala Sitharaman RBI did not object to electoral bonds through SBI: FM Nirmala Sitharaman
Small Finance Banks alert! RBI issues these important guidelines - What SFBs must know Small Finance Banks alert! RBI issues these important guidelines - What SFBs must know
Your set-to-rise phone bills may add to inflation; What RBI Governor said Your set-to-rise phone bills may add to inflation; What RBI Governor said
RBI Policy Meet: Nifty, Sensex slip after repo rates stay unchanged RBI Policy Meet: Nifty, Sensex slip after repo rates stay unchanged

LATEST NEWS

Big thumbs up for Modi government UPI project! Now, even Google wants America to get such successful digital payment system

Budget 2020: Good news coming soon from Modi government for mobile phone buyers?

Jaipur Jewellery Show: Gems & jewellery segment sees silver lining - Here is why

Amul, Mother Dairy milk prices hiked! Check new rates of Delhi, Noida, Ghaziabad, Maharashtra, Gujarat and other regions of full cream, toned and token

Indian Railways passengers alert! Several trains cancelled in Odisha, Puri, Howrah - Check list here

Jumanji: The Next Level Box Office Collection: Superb growth! Check total earnings of The Rock Dwayne Johnson movie

Mardaani 2 Box Office Collection Day 2: Unstoppable! Fantastic growth for Rani Mukerji movie

Senior Citizen Saving Scheme: Top 5 investment options for the retired people

Pati Patni Aur Woh Box Office: Rs 75 cr club is almost here! Winning streak continues

FASTag: NHAI has this plan for toll plazas to ensure smooth roll-out of electronic toll collection

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO Pension
  • Income Tax Return
  • Hyundai Venue
  • NPA
  • Home Loan

Trending Topics

  • Income Tax
  • 7th Pay Commission
  • Reserve Bank of India
  • PACL Refund Claim Online
  • GST
  • income Tax Calculator

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved