|
|
|
|
|
| Home > Related Acts > RBI Act, 1934 |
|
|
| Reserve Bank of India Act, 1934 |
|
Section 45-I of the RBI Act, defines financial institution as under: |
"Financial Institution" means any non-banking institution which carries on as its business or part of its business any of the following activities, namely:- |
| (a) |
the financing, whether by way of making loans or advances or otherwise, of any activity other than its own; |
| (b) |
the acquisition of shares, stock, bonds, debentures or securities issued by a government or local authority or other marketable securities of a like nature; |
| (c) |
letting or delivering of any goods to a hirer under a hire-purchase agreement as defined in clause (c ) of section 2 of the Hire-Purchase Act, 1972; |
| (d) |
the carrying on of any class of insurance business; |
| (e) |
managing, conducting or supervising, as foreman, agent or in any other capacity, of chits or kuries as defined in any law which is for the time being in force in any State, or any business, which is similar thereto; |
| (f) |
collecting, for any purpose or under any scheme or arrangement by whatever name called monies in lump sum or otherwise, by way of subscriptions or by sale of units, or other instruments or in any other manner and awarding prizes or gifts, whether in cash or kind, or disbursing monies in any other way, to persons from whom monies are collected or to any other person. |
|
| But does not include any institution, which carries on as its principal business,- |
| (a) |
agricultural operations; or |
| (bb) |
industrial activity; or; |
| (b) |
the purchase or sale of any goods (other than securities) or the providing of any services; or |
| (c) |
the purchase, construction or sale of immovable property, so however, that no portion of the income of the institution is derive from the financing of purchases, constructions or sales of immovable property by other persons; |
|
As per Section 45-I(f) of the RBI act, "non-banking financial company" means:- |
| (i) |
a financial institution which is a company; |
| (ii) |
a non banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending Tiny manner; |
| (iii) |
such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify." |
|
|
|
|
| Top |
|
 |
|
|
|
|
