NBFCs to submit quarterly returns to RBI
Our Banking Bureau
16 November 2004
Mumbai: The Reserve Bank of India (RBI) said in a notification that non-banking financial companies (NBFCs) would now be required to submit quarterly returns on important financial parameters as per the prescribed format.
This reporting arrangement has been introduced for NBFCs not accepting or holding public deposits and having an asset size of Rs500 crore and above as on March 31, 2004, said the RBI notification.
Some of the parameters to be covered by in these returns would include nature of the company's business, net owned funds, sources and applications of funds. Profit and loss account giving details of income and expenditure will also be required to be mentioned in the report.
Details relating to exposure of banks or financial institutions in the company and the NBFCs exposure to capital markets, foreign funds and associate or related parties are also required to be stated in the report.
According to the reporting arrangement, returns for the quarter ended September 2004 should be submitted to the concerned Regional Offices on or before November 30, and the subsequent returns should be submitted within 30 days of the month following the respective quarter end.
Although, for the quarter ended March, a provisional return may be submitted within 30 days but a final return duly certified by the statutory auditors should be submitted along with a copy of the audited balance sheet. The last date for submitting this report will be September 30.
The notification said penal action would be taken for non-compliance of the report submission requirements.