Page 17 - Union Budget_2019
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Union Budget 2019
"Non-Banking Financial Company" means
• a financial institution which is a company
• 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 in any manner;
• 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;]
"Systemically important non-deposit taking non-banking financial company” means a non-banking financial
company which is not accepting or holding public deposits and having total assets of not less than five
hundred crore rupees as per the last audited balance sheet and is registered with the Reserve Bank of India
under the provisions of the Reserve Bank of India Act, 1934".
These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the
assessment year 2020-21 and subsequent years.
Over the past few years, NBFCs have been going through a tough time and the proposed amendment
would provide some relief to the NBFC’s by bringing them in par with banks and other institution.
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