New Click here to enroll in UIICL SO Finance and Investment Course

    Register

    Question

    In January 2022, RBI came out with Registration of Factors (Reserve Bank) Regulations 2022. As per the regulations, every company seeking registration as NBFC-Factor shall have a minimum Net Owned Fund (NOF) of Rs. _______, or as specified by RBI from time to time

    A 10 crores Correct Answer Incorrect Answer
    B 5 crores Correct Answer Incorrect Answer
    C 15 crores Correct Answer Incorrect Answer
    D 2 crores Correct Answer Incorrect Answer
    E 4 crores Correct Answer Incorrect Answer

    Solution

    In January 2022, RBI came out with Registration of Factors (Reserve Bank) Regulations 2022. The regulations state that every company seeking registration as NBFC-Factor shall have a minimum Net Owned Fund (NOF) of Rs.5 crore, or as specified by the Reserve Bank from time to time. Any existing NBFC-ICC (Investment Credit Company), intending to undertake factoring business, shall make an application to the Reserve Bank for grant of CoR (Certificate of Registration) under the Act if it satisfies the following eligibility criteria: (a) not accepting or holding public deposits; (b) total assets of ₹1,000 crore and above, as per the last audited balance sheet; (c) meeting the NOF requirement as stated above; (d) regulatory compliance.

    Practice Next