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What is a Residuary Non-Banking Company (RNBC) in India?

The full form of RNBC is Residuary Non-Banking Company.

What is a Residuary Non-Banking Company?

A Residuary Non-Banking Company is one of the categories of Non-Banking Financial Company (NBFC).

The principal business of an RNBC is receiving of deposits, under any scheme or arrangement, by whatever name called.

Deposits are received 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.

RNBCs are required to maintain investments as per the prescribed directions of RBI, in addition to liquid assets.

Residuary Non-Banking Company is not:-
an equipment leasing company;
a hire purchase finance company;
a housing finance company;
an insurance company;
an investment company;
a loan company;
a mutual benefit financial company;
a miscellaneous non-banking company; and
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.

Refer — Residuary Non-Banking Companies (Reserve Bank) Directions, 1987