Non-Banking Financial Company(NBFC) - Indian Laws - General

As per section 45-i(f) of Reserve bank of India act, 1934 Non-Banking Financial Company means- (i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the Bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify; As per Notification no. 80/2023 for the purpose of clause (da) of section 43B and section 43D of the Income tax Act 1961, the Central Government hereby notifies the following classes of Non-Banking Financial Company (NBFCs ), for the purpose of the said clause, namely: (a) all NBFCs classified in the Top Layer; (b) all NBFCs classified in the Upper Layer; (c) all NBFCs classified in the Middle Layer. Explanation. The classification of NBFCs in the Top Layer, Upper Layer and Middle Layer shall be according to the Reserve Bank of India s guidelines contained in Circular DOR.CRE.REC.No.60/03.10.001/2021-22 dated October 22, 2021. 2. This notification shall come into force w.e.f. 22nd September, 2023.