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Residuary Non-Banking Company (RNBC)
Meaning of "Residuary Non-Banking
Residuary Non-Banking Company is one of
the category of NBFC, which has as its principal business the receiving of
deposits, under any scheme or arrangement or in any other manner and not being
Investment, Asset Financing, Loan Company. These companies are required to
maintain investments as per directions of RBI, in addition to liquid assets.
which receives any deposit under any scheme or arrangement, by
whatever name called,
in one lump-sum or in installments by way of
contributions or subscriptions or by sale of units or certificates or
other instruments, or in any other manner and
which, according to the
definitions in the Non-Banking Financial Companies Acceptance of Public
Deposits (Reserve Bank) Directions, 1998 or, as the case may be, the
Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 1977 is not
i) an equipment leasing company;
ii) a hire purchase finance company;
iii) a housing finance company;
iv) an insurance company;
v) an investment company;
vi) a loan company;
vii) a mutual
benefit financial company and;
viii) a miscellaneous non-banking company;
ix) a mutual benefit company.
How is RNBCs different from NBFCs?
The functioning of RNBCs is different from
NBFCs in terms of method of mobilisation of deposits and requirement of
deployment of depositors' funds as per Directions. Besides, Prudential Norms
Directions are applicable to these companies also.