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Questions and Answers
Which department of the Reserve Bank of India issued the Master Direction on Non-Banking Financial Company – Scale Based Regulation?
Which department of the Reserve Bank of India issued the Master Direction on Non-Banking Financial Company – Scale Based Regulation?
Under which act does the Reserve Bank of India have the power to regulate the affairs of Non-Banking Financial Companies?
Under which act does the Reserve Bank of India have the power to regulate the affairs of Non-Banking Financial Companies?
What is the purpose of the Master Direction on Non-Banking Financial Company – Scale Based Regulation?
What is the purpose of the Master Direction on Non-Banking Financial Company – Scale Based Regulation?
Which act empowers the Reserve Bank of India to regulate the factoring business of Non-Banking Financial Companies?
Which act empowers the Reserve Bank of India to regulate the factoring business of Non-Banking Financial Companies?
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Where is the Central Office of the Reserve Bank of India located?
Where is the Central Office of the Reserve Bank of India located?
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Study Notes
Master Direction on Non-Banking Financial Companies
- The Master Direction on Non-Banking Financial Company – Scale Based Regulation is issued by the Department of Non-Banking Financial Company and Operations of the Reserve Bank of India.
- This framework is designed to regulate Non-Banking Financial Companies (NBFCs) based on their scale, categorizations, and their risk profile.
Regulatory Authority
- The Reserve Bank of India (RBI) derives its power to regulate Non-Banking Financial Companies under the Reserve Bank of India Act, 1934.
- The act outlines the guidelines and provisions that allow the RBI to oversee financial stability and consumer protection among NBFCs.
Purpose of the Master Direction
- The primary purpose of the Master Direction is to enhance the regulatory framework governing NBFCs, ensuring systemic stability, adequate capital requirements, and improved governance standards.
- It aims to categorize NBFCs into different tiers based on their size and activities, which allows for a more tailored regulatory approach.
Factoring Business Regulation
- The Factoring Regulation Act, 2011 empowers the Reserve Bank of India to regulate the factoring business conducted by Non-Banking Financial Companies.
- This act ensures the orderly growth of the factoring industry and protects the interests of stakeholders involved.
Central Office Location
- The Central Office of the Reserve Bank of India is located in Mumbai, Maharashtra.
- The RBI's headquarters serves as the main hub for its operational and regulatory functions.
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Description
Test your knowledge of RBI's regulations for Non-Banking Financial Companies (NBFCs) with this quiz. Learn about the latest Master Directions and guidelines issued by the Reserve Bank of India. Stay updated and informed about the scale-based regulation for NBFCs.
