Rainbow Finance Limited is a newly incorporated Non-Banking Financial Company (NBFC) in the category of Infrastructure and Finance Company. Its assets size is more than 100 billion. You are appointed as the company secre

Fit and Proper Criteria (1) All applicable NBFCs shall- ensure that a policy is put in place with the approval of the Board of Directors for ascertaining the fit and proper criteria of the directors at the time of appointment, and on a continuing basis. obtain a declaration and undertaking from the directors giving additional information on the directors. The declaration and undertaking shall be on the lines specified by RBI. obtain a Deed of Covenant signed by the directors. furnish to the Reserve Bank a quarterly statement on change of directors, and a certificate from the Managing Director of the NBFC that fit and proper criteria in selection of the directors has been followed. The statement must reach the Regional Office of the Reserve Bank within 15 days of the close of the respective quarter. The statement submitted by NBFCs for the quarter ending March 31, should be certified by the auditors. However, the Bank, if it deems fit and in public interest, reserves the right to examine the fit and proper criteria of directors of any non-banking financial company irrespective of the asset size of such non-banking financial company.