RBI relaxes norms for opening subsidiaries by foreign NBFCs
Mumbai: Relaxing norms for foreign-owned NBFCs to open subsidiaries, the RBI Wednesday said such entities can now set up arms even if the overseas investment is less than 100 percent.
"NBFCs having foreign investment more than 75 percent and up to 100 percent and with a minimum capitalisation of USD 50 million, can set up step down subsidiaries for specific NBFC activities," RBI said in a notification.
Earlier, only 100 percent foreign owned non-banking financial companies (NBFCs) with minimum capitalisation of USD 50 million were allowed to set up subsidiaries.
The notification further said that the step down or operating subsidiaries could be set up without any restriction on their number and without bringing in additional capital.
The RBI notification follows government's decision last week in this regard.