On 9 November 2017, Reserve Bank of India (RBI) issued a notification outlining norms for outsourcing of functions/services by Non-Bank Financial Institution (NBFCs).
Staff of service providers should have access to customer information only up to an extent which is required to perform the outsourced function.
All NBFCs’ have been directed to set up a grievance redressal machinery, which will also deal with the issues relating to services provided by the outsourced agency.
Different types of Committees to Review existing framework of NBFCs: In early 1970s Government of India asked Banking Commission to Study the Functioning of Chit Funds and Examining activities of Non-Banking Financial Intermediaries.
Reserve Bank of India prepared Model Bill to regulate the conduct of chit funds and referred to study group under the Chairmanship of James S. Raj.
It recommended the Parliament to enact a bill which ensures uniformity in the provisions applicable to chit funds throughout the country.
The net owned funds are more than 3 billion and a minimum crediting rating of 'A' and the Capital to Risk-Weighted Assets Ratio is 15%.
IDF-NBFC is a company registered as NBFC to facilitate the flow of long term debt into infrastructure projects.
Growth of gold loan NBFCs occurred both in terms of the size of their balance sheet and their physical presence that compelled to increase their dependence on public funds including bank finance and non-convertible debentures.
The NBFC once registered with the RBI, should only provide account aggregation and data to financial institutions based on customer consent.
[5] The account aggregators are expected to make loan applications easier for users by providing data access to financial institutions.
Bandhan, as well as two other Indian MFIs—Microcredit Foundation of India (ranked 13th) and Saadhana Microfin Society (15th) – have been placed above Bangladesh-based Grameen Bank (which along with its founder Mohammed Yunus, was awarded the Nobel Prize).
[19] Microfinance has come under fire in the state of Andhra Pradesh due to allegations of MFIs using coercive recollection practices and charging usurious interest rates.