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 CORRIGENDUM TO TRADE NOTICE NO. 06/2026-CENTRAL TAX-Territorial re-organization of Divisions and Ranges within the jurisdiction of CGST & CX, Ahmedabad South Commissionerate
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 Central Board of Indirect Taxes and CustomsNotification No. 05/2026–Central Tax
 Seeks to amend notification No. 5/2017- Central Tax dated 19th June, 2017
 Seeks to amend notification No. 5/2017- Central Tax dated 19th June, 2017
 Seeks to amend notification No. 5/2017- Central Tax dated 19th June, 2017
 TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION
 Seeks to amend notification No. 27/2018- Integrated Tax (Rate) dated 31st December, 2018

Withdrawal of Exemptions Granted to Government Owned NBFCs
June, 01st 2018

RBI/2017-18/181
DNBR (PD) CC.No.092/03.10.001/2017-18

May 31, 2018

All Government NBFCs

Madam/ Sir,

Withdrawal of Exemptions Granted to Government Owned NBFCs

Government owned companies, as defined under Clause (45) of Section 2 of the Companies Act, 2013 (Section 617 of the Companies Act, 1956) and registered with the Reserve Bank of India as NBFCs, are currently exempt from following regulatory and statutory provisions:

(i) Sections 45-IB and 45-IC of the RBI Act, 1934.

(ii) Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Master Direction - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 (except provisions contained in paragraph 23 of these Directions).

(iii) Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 (except provisions contained in paragraph 36, 37 and 41 of these Directions).

2. On a review, it has been decided to make the NBFC regulations applicable to Government NBFCs as per the timeline indicated in the Annex to this circular. Government NBFCs that are already complying with the prudential regulation as per the road map submitted by them shall continue to follow the same.

3. Master Directions on Exemptions from the provisions of RBI Act, 1934, Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016, have been updated accordingly.

4. Necessary notification withdrawing the exemption under section 45 NC of the RBI Act, 1934 shall be issued separately.

Yours faithfully

(Manoranjan Mishra)
Chief General Manager


Annex

Timeline for Government NBFCs

Norm Extant Provisions for other NBFCs Govt. NBFCs Timeline
Prudential Regulation
Income recognition As prescribed Balance Sheet dated March 31, 2019
Asset Classification NBFC-NDSI and 
NBFCs-D 
– 90 days norm 
NBFCs-ND – 180 days norm
NBFC-NDSI and NBFCs-D 
120 days – March 31, 2019
90 days – March 31, 2020
NBFCs-ND
180 day norm – March 31, 2019
Provisioning requirement For NPAs – As specified in the Directions. As on March 31, 2019– 100% of prescribed requirement
For Standard Assets 
NBFC-NDSI and NBFCs-D- 0.40%
NBFCs-ND – 0.25%
Capital Adequacy 
Applicable to NDSI and NBFC –D
CRAR – 15% 
Tier 1 – 10%
10% (min Tier I – 7%; March 31, 2019
12% (min Tier I – 8%) March 31, 2020
13% (min Tier I – 9%) March 31, 2021
15% (min Tier I – 10%) March 31, 2022
Leverage Ratio Applicable to NBFC –ND A roadmap for adherence by March 31, 2022 to be prepared by the Govt. NBFC - ND
Concentration of credit/ investment As prescribed Govt. companies set up to serve specific sectors may approach the Reserve Bank for exemptions, if any.  For others, the timeline will be up to balance Sheet dated March 31, 2022.
Others
Corporate Governance etc. As prescribed Balance Sheet dated March 31, 2019
Conduct of Business Regulations (Fair Practices Code) As prescribed Balance Sheet dated March 31, 2019
Acceptance of Deposit Directions
Deposit Directions As prescribed for NBFC-D • Investment Grade Credit rating for acceptance of public deposits- March 31, 2019. 

• A Govt. NBFC-D having investment grade credit rating can accept deposits only upto 1.5 times of its NOF. Govt. NBFCs holding deposits in excess of the limit shall not access fresh deposits or renew existing ones till they conform to the limit, the existing deposits will be allowed to run off till maturity.

• All other directions shall apply from Balance Sheet dated March 31, 2019.
Statutory Provisions
Sec 45 IB Maintenance of percentage of assets – 15% of the outstanding deposits March 31, 2019 – 5% of outstanding deposits 
March 31, 2020 – 10% of outstanding deposits
March 31, 2021 – 12% of outstanding deposits
March 31, 2022 – 15% of outstanding deposits
Sec 45 IC Reserve Fund March 31, 2019

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