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| Name | Converting NBFC into Commercial Bank | Eligibility | Requirements & Benefits | Enterslice |
| Video Uploader | Video From Enterslice |
| Upload Date | This Video Uploaded At 01-06-2022 11:09:29 |
| Video Discription | When it comes to expanding an #NBFC into a #Bank, the different options include conversion into a Commercial Bank, Small Finance Bank and Payments Bank. The first option we will discuss in this video is conversion of NBFC into a Commercial Bank. Once the NBFC has achieved a sufficient loan book, expanded its paid-up capital and set up its lending operations nationwide, one of the best next steps for it is to turn itself into a commercial bank. Let’s also understand what a Bank exactly means. A banking entity is regulated under Section 5 of the Banking Regulation Act, 1949. Any company which is formed or established for the objective of lending or executing any form of investments in the form of money, money deposits, and repayable when asked by the public or on-demand is categorized as a Bank. However, not just any NBFC can convert into a Bank. Only those NBFCs that meet the RBI’s set criteria can choose this option. So, let’s understand what are the set benchmarks that your NBFC needs to meet if you wish to turn your operations from Non-Banking to Banking. First, your NBFC’s minimum paid-up capital must be at least rupees 200 crores, which must further be increased to rupees 300 crores within the next 3 years of operations. Further, the contribution by promoters must be at least 40% of the paid-up money and such capital must be locked in a bank account for 5 years. The company also needs to maintain the capital adequacy ratio between 8 to 10%. Not only that, the NBFC must set up at least 25-30% of its operations in rural and semi-rural areas. You must now be wondering what exactly will you gain by turning your NBFC into a Bank. One of the primary benefits of expanding your NBFC into a Bank is gaining the ability to undertake banking activities that are restricted for an NBFC. Not only can your company accept deposits, set up savings and current bank accounts for your customers, but also issue credit cards and debit cards to your customers once you convert into a Bank. Know more visit: https://enterslice.com/conversion-of-nbfc-into-bank Want to know more about #Enterslice Share, Support, Subscribe!!! to our YouTube channel: http://bit.do/fqM2B Facebook: https://www.facebook.com/enterslice Twitter: https://www.twitter.com/enterslice LinkedIn: https://www.linkedin.com/company/enterslice/ Instagram: http://instagram.com/enterslice_official |
| Category | People & Blogs |
| Tags | enterslice | nbfc | fssai | charted accountant | vcfo | Converting NBFC into Commercial Bank | NBFC conversion to bank | Conversion Of NBFC Into Bank | Regulatory Authority for Conversion of NBFC into Bank | Benefits of Conversion of NBFC into Bank | Eligibility Criteria for Conversion of NBFC into Bank | Procedure for Conversion of NBFC into Bank | Post Compliance Requirements for Conversion of NBFC into Bank | Enterslice for Conversion of NBFC into Bank | Process of Conversion Of NBFC Into Bank |
