Relaxing norms for foreign-owned NBFCs to open subsidiaries, the RBI today 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 $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 $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.
PTI
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