Non-Operative Financial Holding Company (NOFHC) Application of Capital Adequacy Norms
November, 20th 2015
November 19, 2015
All Scheduled Commercial Banks (Excluding Local Area Banks and Regional Rural Banks)
Madam / Sir,
Non-Operative Financial Holding Company (NOFHC) – Application of Capital Adequacy Norms
Please refer to the Guidelines for Licensing of New Banks in the Private Sector issued on February 22, 2013. The guidelines inter alia require setting up of wholly-owned Non-Operative Financial Holding Company (NOFHC) by eligible entities / groups in the private sector for carrying out business of banking and other permissible financial activities. Further, in terms of paragraph 2(H) of the guidelines, capital adequacy norms would be applied to the NOFHC on consolidated basis as applicable to the existing banking groups.