• Based on section 45IA of the RBI Act, 1934, no company will start or continue the business of a non-banking bank without acquiring an NBFC registration certification without having a Net Owned Funds of R. 200 lakhs.
  • The fundamental demand for NBFC registration as an NBFC is the minimum net-owned Rs. 200 Lakh funds.
  • Net Owned Finances indicates the balance of possessed funds minus the quantity of financial investment in shares of subsidiaries, business in the same group and all other NBFC's, outstanding loans and advances, and deposits with subsidiaries and firms in the same company.
  • Owned funds are the accumulation of paid-up equity capital, preference shares which are imperatively exchangeable into equity, free reserves
  • And balance in share costs accounts, and also money gets representing excess emerging out of sale profits of the possession.