The Reserve Bank of India (RBI) on April 29, 2026, issued the FAQs about NBFCs.
The following has been stated:
• The FAQs clarify that not all NBFCs can accept public deposits—only those registered with RBI and having a specific deposit-taking licence can do so, subject to limits, credit rating requirements, and tenure restrictions (generally 12–60 months, with capped interest rates).
• It emphasizes that banks are the primary entities allowed to accept public deposits, while unregistered entities like individuals or partnership firms are prohibited. The RBI restricts deposit-taking by NBFCs mainly to protect depositors, as such deposits are unsecured and not insured by DICGC.
• The FAQs also explain what qualifies as “public deposits,” distinguish them from other funds (like loans from directors or secured debentures), and outline actions in case of default or illegal deposit schemes, including regulatory intervention and legal remedies under laws like the Banning of Unregulated Deposit Schemes Act, 2019.
