New bill to help NBFCs recover loans
28 Sep 2001
The Reserve Bank of India (RBI) proposes to initiate legislative measures that would empower Non Banking Finance Companies (NBFCs) take possession of and sell the assets financed by them without going to court.
Speaking at a seminar organised by the Equipment Leasing Association of India here on Thursday, RBI executive director Umarji said that a draft of the proposed bill has been made available on the RBI website and recommendations from all associations connected with the NBFC industry have been invited.
Associations have to take immediate steps to send their comments before the bill is passed in Parliament, he said .He said the law would first be applicable to banks and other financial institutions it is extended to NBFCs.
The RBI is also considering making mandatory for all non deposit taking companies to file returns with the RBI.
