What are the regulations relating to acceptance of deposits by non-banking financial companies conferred under chapter III B of the Reserve Bank of India Act, 1934?

Chapter III B of Reserve Bank of India Act, 1934 deals inter-alia with the regulation and supervision of non-banking financial institutions and with the provisions relating to institutions receiving deposits. Some of the important regulations relating to acceptance of deposits by Non-Banking Financial Companies (NBFCs) are as under: The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand. NBFCs cannot offer interest rates higher than the ceiling rate prescribed by Reserve Bank of India from time to time. NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors. NBFCs should have minimum investment grade credit rating. The deposits with NBFCs are not insured. The repayment of deposits by NBFCs is not guaranteed by Reserve Bank of India. Certain mandatory disclosures are to be made about the NBFC in the Application form issued by the NBFC soliciting deposits. The said NBFC's are also required to submit various returns from time to time in relation to the said deposits.