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		<title>Small Finance Banks in India: A Comprehensive Overview</title>
		<link>https://muds.co.in/top-small-finance-banks/</link>
		
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		<pubDate>Mon, 30 Jan 2023 09:23:09 +0000</pubDate>
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					<description><![CDATA[<p>What are Small Finance Banks? Small Finance Banks (SFBs) are a category of banks in India that aim to provide banking services to the underserved and unbanked sections of society, including small farmers, micro and small enterprises, and low-income households. The primary objective of these banks is to promote financial inclusion by extending banking services [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/top-small-finance-banks/">Small Finance Banks in India: A Comprehensive Overview</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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										<content:encoded><![CDATA[<h2><b>What are Small Finance Banks?</b></h2>
<p><span style="font-weight: 400;">Small Finance Banks (SFBs) are a category of banks in India that aim to provide banking services to the underserved and unbanked sections of society, including small farmers, micro and small enterprises, and low-income households. The primary objective of these banks is to promote financial inclusion by extending banking services to remote and rural areas where traditional banks have limited reach.</span></p>
<p><span style="font-weight: 400;">Introduced by the Reserve Bank of India (RBI) in 2015, Small Finance Banks are licensed under the provisions of Section 22 of the Banking Regulation Act, 1949. Unlike regular commercial banks, SFBs have a mandate to serve the unbanked and underbanked populations, which include offering savings and deposit products, providing loans, and offering remittance services.</span></p>
<p><span style="font-weight: 400;">The key characteristics of Small Finance Banks are:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>Target Audience:</b><span style="font-weight: 400;"> Primarily target small businesses, micro-enterprises, and low-income groups in rural and semi-urban areas.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Capital Requirement:</b><span style="font-weight: 400;"> These banks must maintain a minimum paid-up equity capital and reserves of Rs. 100 crore.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Operations:</b><span style="font-weight: 400;"> SFBs can operate in areas where conventional banking services are minimal and extend loans for agricultural and small-business purposes.</span></li>
</ul>
<h2><b>10 Best Small Finance Banks in India</b></h2>
<p><span style="font-weight: 400;">India has seen an emergence of several </span><a href="https://muds.co.in/nbfc-vs-micro-financing-institution/"><span style="font-weight: 400;">Small Finance Banks</span></a><span style="font-weight: 400;"> that have been actively contributing to the financial inclusion agenda. The following are considered among the top Small Finance Banks in India:</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><b>AU Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">One of the largest and most popular Small Finance Banks in India. Known for its robust digital banking infrastructure and strong customer service.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Ujjivan Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">A leading bank with a strong presence in rural areas, Ujjivan has made its mark with its focus on serving low-income households and small businesses.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Equitas Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">With a significant presence in South India, Equitas offers a variety of products ranging from savings accounts to microloans for small businesses.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Jana Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">Known for its micro-finance services, Jana SFB is a prominent player in providing banking solutions to underserved rural populations.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Suryoday Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">Offers financial products designed for low-income families and small businesses, with a focus on rural and semi-urban markets.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>IDFC First Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">Though it started as a regular bank, IDFC transitioned to a Small Finance Bank model to cater to small enterprises and rural customers.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Fincare Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">A relatively newer player, but known for its community-driven approach, particularly in Maharashtra and Karnataka.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>ESA Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">ESA focuses on empowering the rural economy through affordable banking services and micro-lending options.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Shivalik Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">Offers banking services that cater to both urban and rural populations with a variety of deposit products and loans.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Capital Small Finance Bank</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">One of the earliest entrants into the small finance banking space, with a wide customer base across Punjab and Delhi NCR.</span></li>
</ul>
</li>
</ol>
<h2><b>List of Small Finance Banks in India</b></h2>
<p><span style="font-weight: 400;">The Reserve Bank of India (RBI) has issued licenses to a number of entities, both new and existing, to operate as Small Finance Banks in India. The current list of Small Finance Banks includes:</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.aubank.in/"><b>AU Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.ujjivansfb.in/"><b>Ujjivan Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.equitasbank.com/"><b>Equitas Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.janabank.com/"><b>Jana Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.suryodaybank.com/"><b>Suryoday Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.idfcfirstbank.com/"><b>IDFC First Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://fincarebank.com/"><b>Fincare Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.esafbank.com/"><b>ESA Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://shivalikbank.com/"><b>Shivalik Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.capitalbank.co.in/"><b>Capital Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://nesfb.com/"><b>North East Small Finance Bank</b></a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.muthootfinance.com/"><b>Muthoot Small Finance Bank</b></a></li>
</ol>
<p><span style="font-weight: 400;">These banks have made significant strides in providing basic financial services such as savings accounts, fixed deposits, and loans to people in rural and semi-urban regions.</span></p>
<h2><b>Difference Between Small Finance Banks, Payment Banks, and Regular Banks</b></h2>
<p><span style="font-weight: 400;">While Small Finance Banks (SFBs) share certain features with regular commercial banks, there are notable differences between these categories. Understanding these differences can help in appreciating the role each type of bank plays in India&#8217;s financial ecosystem.</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><b>Small Finance Banks (SFBs) vs. Regular Banks:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><b>Target Audience:</b><span style="font-weight: 400;"> SFBs primarily target unbanked and underserved sections of society, especially in rural areas. They cater to small businesses, small farmers, and low-income households. Regular banks, on the other hand, have a broader clientele, including affluent individuals, large corporations, and government bodies.</span></li>
<li style="font-weight: 400;" aria-level="2"><b>Services:</b><span style="font-weight: 400;"> SFBs are mandated to provide financial inclusion services to sectors like agriculture, micro-enterprises, and unorganised sectors, which regular banks may not focus on as much.</span></li>
<li style="font-weight: 400;" aria-level="2"><b>Capital Requirements:</b><span style="font-weight: 400;"><span style="font-weight: 400;"> SFBs must maintain a minimum paid-up equity capital of Rs. 100 crore, while regular banks usually have a higher requirement.</span></span>&nbsp;</li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Small Finance Banks (SFBs) vs. Payment Banks:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><b>Core Functionality:</b><span style="font-weight: 400;"> Payment Banks focus primarily on providing basic remittance, money transfer, and savings account services. They cannot offer loans or credit facilities, which SFBs are permitted to do. Payment Banks are intended to cater to low-income individuals, but they do not extend credit to their customers, unlike Small Finance Banks, which provide loans to individuals and businesses.</span></li>
<li style="font-weight: 400;" aria-level="2"><b>Deposit Limits:</b><span style="font-weight: 400;"> Payment banks have a limit of Rs. 1 lakh per account, while SFBs can offer a full range of banking products without such restrictions.</span></li>
<li style="font-weight: 400;" aria-level="2"><b>Scope of Services:</b><span style="font-weight: 400;"> Payment Banks primarily focus on remittance services and digital payments, while SFBs offer loans, insurance, and other financial products.</span></li>
</ul>
</li>
</ol>
<h2><b>Guidelines for Operating Small Finance Banks</b></h2>
<p><span style="font-weight: 400;">The Reserve Bank of India (RBI) has set specific guidelines that must be adhered to for operating Small Finance Banks in India. These guidelines are crucial to ensure that these banks maintain financial stability, contribute to financial inclusion, and follow best practices in governance.</span></p>
<p><span style="font-weight: 400;">Key guidelines include:</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><b>Minimum Paid-Up Capital:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">SFBs must have a minimum paid-up equity capital of Rs. 100 crore. This ensures that the bank has a solid financial foundation to provide services and absorb potential losses.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Operational Area:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">The banks are required to operate primarily in the underserved and unbanked regions of India. The goal is to bring banking services to people who do not have easy access to traditional banking infrastructure.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Loan Concentration:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">The lending portfolio of Small Finance Banks must include loans to small businesses, farmers, and micro-enterprises, with a focus on rural and semi-urban regions. The RBI mandates that at least 75% of the total loans issued by an SFB must go to sectors like agriculture, micro-enterprises, and small businesses.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Branch Network:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">SFBs must have a substantial number of branches in rural and semi-urban areas, making banking services accessible to people in these regions.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Non-Performing Assets (NPAs):</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">The RBI monitors the NPAs of Small Finance Banks closely. Since SFBs deal with high-risk sectors such as agriculture and micro-enterprises, managing loan defaults and maintaining low NPAs is essential.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Capital Adequacy and Risk Management:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">SFBs must adhere to the prescribed Capital Adequacy Ratio (CAR) of 15%, which ensures they have enough capital to withstand financial shocks. They are also required to implement strong risk management practices to safeguard against potential defaults and market risks.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Technology and Digital Banking:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">The RBI encourages the use of technology for efficient banking services. Small Finance Banks are expected to adopt digital banking platforms to ensure wider reach and ease of access to banking services.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Governance and Compliance:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">The governance structure of SFBs must adhere to high standards of transparency and accountability. They must also comply with RBI regulations related to Know Your Customer (KYC), Anti-Money Laundering (AML), and other regulatory requirements.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Target Lending:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">At least 50% of the total lending of a Small Finance Bank must be in the form of loans up to Rs. 25 lakh, catering to micro, small, and medium enterprises (MSMEs) and low-income groups.</span></li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Financial Inclusion Plans:</b>
<ul>
<li style="font-weight: 400;" aria-level="2"><span style="font-weight: 400;">Small Finance Banks are required to have specific financial inclusion plans to ensure that the benefits of banking reach marginalized communities and regions.</span></li>
</ul>
</li>
</ol>
<table>
<tbody>
<tr>
<th><b>Guideline</b></th>
<th><b>Description</b></th>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Minimum Paid-Up Capital</b></td>
<td><span style="font-weight: 400;">SFBs must have a minimum paid-up equity capital of Rs. 100 crore to ensure financial stability and operational efficiency.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Target Audience</b></td>
<td><span style="font-weight: 400;">SFBs must primarily serve underserved sections of society, including small businesses, micro-enterprises, farmers, and low-income households, particularly in rural areas.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Loan Concentration</b></td>
<td><span style="font-weight: 400;">At least 75% of total loans must be given to sectors such as agriculture, micro-enterprises, and small businesses in rural and semi-urban areas.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Branch Network</b></td>
<td><span style="font-weight: 400;">SFBs are required to have a substantial number of branches in rural and semi-urban areas to provide easy access to banking services for underserved populations.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Non-Performing Assets (NPAs)</b></td>
<td><span style="font-weight: 400;">SFBs must manage and reduce NPAs to ensure financial health. The RBI closely monitors loan defaults and requires effective risk management practices.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Capital Adequacy Ratio (CAR)</b></td>
<td><span style="font-weight: 400;">SFBs must maintain a minimum Capital Adequacy Ratio of 15% to ensure they can absorb potential financial risks and shocks.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Technology and Digital Banking</b></td>
<td><span style="font-weight: 400;">SFBs must implement robust technology and digital banking platforms to extend their reach and offer efficient services to customers, especially in remote areas.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Governance and Compliance</b></td>
<td><span style="font-weight: 400;">SFBs must follow transparent governance structures and comply with regulatory standards such as KYC (Know Your Customer) and AML (Anti-Money Laundering).</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Target Lending</b></td>
<td><span style="font-weight: 400;">At least 50% of total lending should be to micro, small, and medium enterprises (MSMEs) or low-income groups, with loans up to Rs. 25 lakh.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Financial Inclusion Plan</b></td>
<td><span style="font-weight: 400;">SFBs must have specific plans to enhance financial inclusion, ensuring that banking services are accessible to marginalized and unbanked communities.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Promoter’s Contribution</b></td>
<td><span style="font-weight: 400;">The promoters should hold a minimum of 40% of the paid-up capital for the first 5 years. After that, they can reduce their holding to 26% over time.</span></td>
</tr>
</tbody>
</table>
<table>
<tbody>
<tr>
<td><b>Foreign Shareholding</b></td>
<td><span style="font-weight: 400;">Foreign investors can hold up to 49% of the paid-up capital in the first five years, after which the limit is reduced to 26%.</span></td>
</tr>
</tbody>
</table>
<h2><b>Conclusion</b></h2>
<p><span style="font-weight: 400;">Small Finance Banks are a vital component of India&#8217;s financial ecosystem, helping to bridge the gap between formal financial services and underserved populations. Their role in financial inclusion cannot be overstated, as they provide access to banking products for small businesses, farmers, and low-income groups, thereby contributing to the overall economic development of the country. By adhering to strict regulatory guidelines set by the RBI, these banks ensure their sustainability and continued focus on promoting financial inclusion, especially in rural and semi-urban areas.</span></p>
<p><span style="font-weight: 400;">While the sector is still evolving, the performance of leading Small Finance Banks such as AU Small Finance Bank, Ujjivan, and Equitas showcases the potential of this banking model in transforming the Indian financial landscape. With continuous efforts towards expanding their reach and enhancing digital services, Small Finance Banks are poised to play a significant role in achieving the goal of universal banking access in India.</span></p>
<p>The post <a rel="nofollow" href="https://muds.co.in/top-small-finance-banks/">Small Finance Banks in India: A Comprehensive Overview</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></content:encoded>
					
		
		
			</item>
		<item>
		<title>Private Limited Company Registration in Kolkata Via Online Method</title>
		<link>https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 08:52:16 +0000</pubDate>
				<category><![CDATA[Consulting]]></category>
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					<description><![CDATA[<p>Private Limited Company Registration in Kolkata&#160; In this post, we’ll look at how to register a business in Kolkata. Company registration is a procedure through which all businesses are registered on the MCA’s website (Ministry of Corporate Affairs). The Company Registration in Kolkata is a simple procedure, but it requires numerous procedures to complete. A [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/">Private Limited Company Registration in Kolkata Via Online Method</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>Private Limited Company Registration in Kolkata&nbsp;</h2>
<p>In this post, we’ll look at how to register a business in Kolkata. Company registration is a procedure through which all businesses are registered on the MCA’s website (Ministry of Corporate Affairs). The Company Registration in Kolkata is a simple procedure, but it requires numerous procedures to complete.</p>
<p>A Private Limited Company offers its stockholders legal protection and limited liability. A privaely held limited firm must have at least positions two working directors. A person can be both a director and a shareholder in a Private Limited Company. After receiving a Certificate of Incorporation, a Private Limited Company (PLC) can begin operations. Within 15 days following its application, a PLC can be implemented.</p>
<p>As a result, we will concentrate on the advantages and procedures of forming a Private Limited Company registrationin Kolkata in this post.</p>
<h2 data-fontsize="20" data-lineheight="24"><b>Advantages of forming a private firm company registration in Kolkata</b></h2>
<ol>
<li aria-level="1">A private limited company might have anything from two to fifty directors.</li>
<li aria-level="1">It is a legal autonomous body.</li>
<li aria-level="1">Directors have limited liability and are not directly responsible for the company’s operations.</li>
<li aria-level="1">Directors are only partially liable to creditors.</li>
<li aria-level="1">In the event of a default, the bank or creditors will sell the company’s assets rather than personal property.</li>
<li aria-level="1">The directors are eligible for tax benefits.</li>
<li aria-level="1">Suing or being sued in the name of a registered corporation is possible.</li>
<li aria-level="1">Companies that are registered have a higher chance of borrowing money.</li>
</ol>
<h2><b>Company Registration in Kolkata: Private Company Incorporation Checklist</b></h2>
<ul>
<li aria-level="1"><b>Directors:</b>&nbsp;For private company registration in Kolkata, a minimum of two directors is required, with one of them being a resident director.</li>
<li aria-level="1"><b>The investment</b>&nbsp;must be made in accordance with the business type, and there is no minimum capital investment necessary for a firm.</li>
<li aria-level="1">Inventive business name: The name of the firm must not be identical or confusingly similar to that of another company.</li>
<li aria-level="1"><b>Registered address:</b>&nbsp;Every business should have one.</li>
</ul>
<h2><b>Steps for Incorporation of the Company</b></h2>
<p><i>The following are the stages of forming a business using the RUN form:</i></p>
<ol>
<li aria-level="1"><i>After that, create a login account and log in.</i></li>
<li aria-level="1"><i>Enter the name you want to use and cross-reference it with the MCA database.</i></li>
<li aria-level="1"><i>If an established business wants to reverse its name, a CIN will be requested through the RUN e- form.</i></li>
<li aria-level="1"><i>The applicant must specify the name that he or she wishes to keep on file in case the firm’s name is changed or a new company is formed.</i></li>
<li aria-level="1"><i>Then he or she must submit the prospective company’s objects as well as any additional documents in support of the suggested name.</i></li>
</ol>
<h3><b>Limited Name Validity</b></h3>
<ul>
<li aria-level="1">For a new corporation, an authorised name is valid for 20 days from the date of approval.</li>
<li aria-level="1">60 days after the date of authorization for changing the name of an established corporation.</li>
</ul>
<h2><b>Steps for Private Company Registration in Kolkata</b></h2>
<h3><b>Step 1: Obtain DSC</b></h3>
<p>Because the process is online, a digital signature is required for the incorporation of a private limited company. Members and executives must have a legitimate Class II or Class III DSC.</p>
<h3><b>Step 2: Fill out an application for a DIN number.</b></h3>
<p>A directors must have a DIN and must apply for one on MCA if he does not already have one. A DIN number can be used to become a director in many&nbsp;<a href="https://timesofindia.indiatimes.com/blogs/voices/retrieve-your-lost-and-unclaimed-investment-made-in-shares-and-find-lost-shares-and-understand-the-process-of-recovering-them/?fbclid=IwAR2_cdzzvVYRtdMtNZw5qhHOwkPftQPP2kpDmj0358shoGMjcALSXi4pPY0">businesses</a>.</p>
<h3><b>Step 3: Submit an application for name approval</b></h3>
<p>At the time of establishment, the company’s name, as well as SPICe (INC-32) must be submitted for approval. If the name is rejected, it can be resubmitted.</p>
<h3><b>Step 4:&nbsp;</b>e-MoA (INC-33) and e-AoA are the fourth and final steps (INC-34)</h3>
<p>Previously, MoA and AoA had to be filed physically, but now they must be filed online on the MCA website. These papers must be digitally signed by the subscribers.</p>
<h3><b>Step 5: PAN and TAN applications</b></h3>
<p>After all of the paperwork have been completed, the applicant should consider applying for a PAN and TAN.</p>
<h3><b>Step 6: Certificate of Incorporation&nbsp;</b></h3>
<p>MCA &amp; RoC will analyse all of the documentation and issue a Certificate of Incorporation if they are pleased. The Certificate of Incorporation is a legal document that grants the firm legal standing.</p>
<h3><b>7th Step: Open bank Accounts</b></h3>
<p>The firm must create a bank account for any transactions in its name after receiving the certificate of incorporation.</p>
<p><b>In order to register a company in Kolkata, you’ll need the following documents</b></p>
<p>Documents required for company registration&nbsp; in Kolkata:</p>
<ol>
<li aria-level="1">For DSC&nbsp;</li>
<li aria-level="1">DIN (Director Identification Number)</li>
<li aria-level="1">Incorporation of a Business</li>
</ol>
<h2><b>In the case of DSC,</b></h2>
<ol>
<li aria-level="1">Along with the DSC application form, the following papers must be forwarded:</li>
<li aria-level="1">The claimant’s photograph (to be stamped across with a blue pen)</li>
<li aria-level="1">The director’s address proof (s)</li>
<li aria-level="1">Id Proof (<a href="https://muds.co.in/process-for-name-change-in-pan-card/">Pan Card</a>) of the applicant Passport Aadhar card Driving licence Voter Id card Email Id and contact number (for each director)</li>
</ol>
<h2><b>DIN</b></h2>
<p>Fill out the e-form DIR -3, which is available on the MCA website. Alongside Form DIR -3, attach the supporting information:</p>
<ol>
<li aria-level="1">Id proof photo of the applicant (attested)</li>
<li aria-level="1">Proof of address (attested)</li>
<li aria-level="1">Make the payment as directed. The only way to pay is on the internet.</li>
<li aria-level="1">There will be a preliminary DIN created.</li>
<li aria-level="1">A preliminary DIN becomes an authorised DIN after verification.</li>
</ol>
<ul>
<li aria-level="2">For a Firm’s Registration</li>
<li aria-level="2">The Firm’s Title</li>
<li aria-level="2">The firm’s assets</li>
<li aria-level="2">Investors’ list</li>
<li aria-level="2">The director’s Id proof is the company’s purpose (s)</li>
</ul>
<ol>
<li aria-level="1">Aadhar card and passport</li>
<li aria-level="1">Id cards for voters and driver’s licence</li>
<li aria-level="1">Director’s proof of residence (s)</li>
<li aria-level="1">Bank statement Telephone bill</li>
<li aria-level="1">The cost of electricity</li>
<li aria-level="1">Mobile phone bill (not old than two months)</li>
<li aria-level="1">INC-9 Director(s) Consent (form DIR-2) (Affidavit)</li>
</ol>
<ul>
<li aria-level="1">Proof of the registered office’s address</li>
</ul>
<ol>
<li aria-level="1">Bills of Gas,&nbsp;</li>
<li aria-level="1">Phone, and</li>
<li aria-level="1">Electricity</li>
</ol>
<p>If the office is included in the lease, the lease agreement and a letter of authorization from the owner are required.</p>
<h2><b>Holders of DINs declare themselves</b></h2>
<p>A Private Limited&nbsp;<a href="https://muds.co.in/company-registration-2/">Company Registration</a>&nbsp;in Kolkata is an online operation that should be completed with caution, and once completed, the directors are entitled to all of the privileges of a Private Limited Company.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/">Private Limited Company Registration in Kolkata Via Online Method</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<item>
		<title>New Monetary Policy 2022: Repo Rate Remained Unchanged</title>
		<link>https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 08:23:53 +0000</pubDate>
				<category><![CDATA[Consulting]]></category>
		<category><![CDATA[Corporate Insolvency Resolution Process]]></category>
		<category><![CDATA[Debt Recovery]]></category>
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		<guid isPermaLink="false">https://muds.co.in/?p=13891</guid>

					<description><![CDATA[<p>New Monetary Policy 2022 Releases from the RBI Monetary Policy 2022 Meeting: The six-member Monetary Policy 2022 Committee (MPC), led by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % intact. Here’s what the governor of India’s central bank said. RBI Monetary [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/">New Monetary Policy 2022: Repo Rate Remained Unchanged</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h1>New Monetary Policy 2022</h1>
<p>Releases from the RBI Monetary Policy 2022 Meeting: The six-member Monetary Policy 2022 Committee (MPC), led by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % intact. Here’s what the governor of India’s central bank said.</p>
<p><b>RBI Monetary Policy 2022: The Reserve Bank of India’s (RBI) Monetary Policy 2022 Committee (MPC) retained the repo rate at 4% for the 11th straight approach achieves a ‘affiliative posture,’ according to RBI Governor Shaktikanta Das on Friday.</b></p>
<p><b>The MPC decided unanimously to continue the accommodating approach, according to the central bank governor, and the reverse repo rate was also remained steady at 3.35 percent.</b></p>
<p>The Marginal Standing Facility (MSF) rates and the lending rate were likewise held steady at&nbsp;<b><i>4.25 percent.</i></b></p>
<p>On May 22, 2020, the RBI reduced its policy repo rate, or short-term lending rate, in an off-policy cycle to boost demand by decreasing interest rates to a historic low.</p>
<p>In a press conference following the Monetary Policy 2022 meeting, Das stated that the RBI will return the liquidity adjustment facility (LAF) corridor to 50 basis points (bps), as it was pre-Covid. The MSF rate and the bank rate remain at 4.25 percent.</p>
<p><b><i>“It also agreed to remain accommodating while concentrating on withdrawal of accommodation to ensure that inflation remains within the goal moving ahead, while encouraging expansion,”&nbsp;</i></b></p>
<p>-he added on the central bank’s attitude.</p>
<p>” It will continue to be part of the RBI’s toolbox, and its use will be at the discretion of the RBI for objectives that are indicated from time to time. The FRRR, in conjunction with the SDF, will increase the flexibility of the RBI’s liquidity management framework.”</p>
<p>The RBI reduced its growth prediction for the current fiscal year to 7.2 percent from 7.8 percent previously, while increasing its inflation forecast to 5.7 percent from 4.5 percent.</p>
<p>He went on to say that, given the inordinate volatility in international oil prices as of early February, as well as the extreme uncertainty surrounding the evolving geopolitical tensions, any projection of growth and inflation is fraught with risk, and is largely dependent on future oil and commodity price developments.</p>
<p>Das addressed liquidity and financial market circumstances in his speech, stating that the RBI will continue to take a sophisticated and agile approach to liquidity risk management while preserving appropriate liquidity in the system.</p>
<p>“At the moment, liquidity management is distinguished by two procedures: variable rate reverse repo (VRRR) bids of varied maturities to swallow liquidity, and variable rate repo (VRR) auctions to fill temporary liquidity problems and offset anomalies.” “We will keep taking this strategy,” he stated.</p>
<h2 data-fontsize="20" data-lineheight="24"><b>ATM cash withdrawal without a card that is interoperable</b></h2>
<p>In an effort to combat fraud, the Reserve Bank of India agreed on Friday to allow all banks to use card-less cash withdrawal through ATMs. Currently, card-less cash withdrawal via ATMs is a permissible form of transaction allowed by a few banks in the nation on an as-needed basis (for their customers at their own ATMs).</p>
<h3><b>Economic experts and market analysts reacted as follows:</b></h3>
<ul>
<li aria-level="1">The severe reduction in GDP forecasts for FY23 and significant increase in inflation expectations for FY23 might suggest some tightening measures in the future, which would be supported by the shift in posture to focus on withdrawal of accommodation. Current geopolitical developments, supply chain concerns, and commodity price increases are tying the RBI’s hands and pushing it to progressively turn hawkish, despite its desire to maintain its pro-growth perspective. The 10-year Gsec yield has increased to 7%, showing the street’s worry over the massive borrowing programme in the face of rising interest rates.”</li>
<li aria-level="1">“Retaining the repo rate at 4% and the reverse repo rate at 3.35 percent, continuing with the accommodating posture on expected lines,” said V K Vijayakumar, Chief Investment Strategist at Geojit&nbsp;<a href="https://muds.co.in/">Financial Services</a>. Recognizing the new reality of increased petroleum prices caused by the war, the RBI cut the FY23 GDP growth rate prediction to 7.2 percent from 7.8 percent before and upped the FY23 CPI inflation projection to 5.7 percent from 4.5 percent previously. This is predicated on the premise that crude will be $100 per barrel. This suggests that if crude falls considerably, which is likely if the conflict ends soon, GDP and inflation will improve.The opposite might be true if the battle escalates and petroleum prices rise well beyond $100. The Governor correctly underscored India’s macroeconomic fundamentals, noting to an improvement in the external position aided by record exports, large foreign reserves of $608 billion, and banking sector development. The SDF (Standing Deposit Facility) is a new mechanism established by the central bank to absorb liquidity.&nbsp;</li>
</ul>
<p>“The recent RBI Monetary Policy 2022 did not include any surprises,” stated Nish Bhatt, Founder &amp; CEO of Millwood Kane International, “it held rates constant for the 11th straight policy.” However, it has clearly outlined the road to policy unwinding. The emphasis will now be on withdrawing the accommodating policy stance in order to keep inflation under control. The&nbsp;<a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53601">RBI’s statement today</a>&nbsp;plainly suggests the end of loose Monetary Policy 2022, which is reflected in the 10-year benchmark yield, which has reached a multi-year high.&nbsp;The unwinding of liquidity will cause some instability, and it is expected that the RBI would drop the growth rate prediction for FY23 to 7.2 percent, with the inflation target raised to 5.7 percent from 4.5 percent previously. The explicit goal of central banks throughout the world is to manage inflation, unwind lose money, and concentrate on gradual and steady development.“</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/">New Monetary Policy 2022: Repo Rate Remained Unchanged</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<item>
		<title>POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</title>
		<link>https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 07:03:53 +0000</pubDate>
				<category><![CDATA[PoSH]]></category>
		<category><![CDATA[Debt Recovery]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
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		<category><![CDATA[Insolvency and Bankruptcy code]]></category>
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					<description><![CDATA[<p>POSH Act: ALL ABOUT THE SEXUAL HARASSMENT LAW&#160; Sexual harassment law:&#160;The word “workplace” confers to the Sexual&#160;harassment at workplace&#160;of Women at Workplace (Regulation, Prevention, and Redressal) Posh Act of 2013, and specifically includes: All offices or other locations where the Company does business. All Company-related activities undertaken at any other place that is not the [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/">POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>POSH Act: ALL ABOUT THE SEXUAL HARASSMENT LAW&nbsp;</h2>
<p><b>Sexual harassment law:</b>&nbsp;<b><i>The word “workplace” confers to the Sexual&nbsp;</i></b><b>harassment at workplace</b><b><i>&nbsp;of Women at Workplace (Regulation, Prevention, and Redressal) Posh Act of 2013, and specifically includes:</i></b></p>
<div class="post-content">
<ol>
<li>All offices or other locations where the Company does business.</li>
<li>All Company-related activities undertaken at any other place that is not the Company’s premises and is under the authority of the employers.</li>
<li>Any social, business, or other activities and/or events, seminars, or corporate gatherings where the behavior and/or commencements may have a negative influence on working women workers participating in the event.</li>
</ol>
<h2><b>HOW TO PREVENT SEXUAL HARRASSMENT</b></h2>
<p>Sexual harassment law prevention—</p>
<p>(1) No woman shall be exposed to sexual harassment in any job.</p>
<p>(2) If any of the below events take place, are presented in conjunction with, or are connected to any act or behavior of gender based violence, they may be considered sexual assault:</p>
<ul>
<li aria-level="1">Inferred or clear and specific assure of favorable treatment in her workplace;</li>
<li aria-level="1">Inferred or imminent threat of harassment at workplace and discrimination in her workplace;&nbsp;</li>
<li aria-level="1">Inferred or actual assault about her current or future job status; or&nbsp;</li>
<li aria-level="1">Intervention with her job role or creation of a threatening, objectionable, or hostile work environment for her; or</li>
<li aria-level="1">Mortifying treatment likely to damage her safety and wellbeing</li>
</ul>
<p>All Group/Company personnel have a personal duty to ensure that their actions do not violate this policy. All workers are asked to underline the importance of maintaining a sexual harassment at workplace-free workplace.</p>
<h4><b>Grievance Procedure:&nbsp;</b></h4>
<p>In the Company/Group, a suitable complaint mechanism in the form of a “Internal Complaints Committee” (ICC) has been established for the timely redress of the victim employee’s complaint.</p>
<h2><b>ESTABLISHMENT OF INTERNAL COMPLAINTS COMMITTEE (ICC):</b></h2>
<p>All personnel at the site who are covered by the committee are informed of the committee’s details (workplace).</p>
<h3><b><i>Each location’s committee consists of the following individuals:</i></b></h3>
<ul>
<li aria-level="1">A woman in a top position in the company or workplace serves as the presiding officer.</li>
<li aria-level="1">At least two staff who are devoted to the cause of women and/or have legal expertise;</li>
<li aria-level="1">One representative from a non-governmental group or association dedicated to the cause of women, or a person knowledgeable about sexual harassment concerns.</li>
</ul>
<h3><b>The Internal Complaints Committee is in charge of the following:</b></h3>
<ul>
<li aria-level="1">Receiving sexual harassment at workplace allegations in the workplace.</li>
<li aria-level="1">Initiating and conducting an investigation in accordance with the Act’s stated procedure.</li>
<li aria-level="1">Inquiry results and suggestions are submitted.</li>
<li aria-level="1">collaborating with the employer to put necessary measures in place.</li>
<li aria-level="1">Following the established policy of maintaining tight secrecy throughout the process.</li>
<li aria-level="1">Discourage and prevent sexualharassment at workplace.</li>
</ul>
<h2><b>PROCEDURES FOR RESOLVING, SETTLING, OR PROSECUTING SEXUAL HARASSMENT LAW:</b></h2>
<p>As follows, the Company is dedicated to creating a supportive atmosphere for resolving sexual harassment complaints:</p>
<ol>
<li aria-level="1">When an episode of sexual harassment happens, the victim of such conduct can instantly convey their displeasure and concerns to the harasser, as well as urge that the harasser act respectfully. If the harassment continues, or if the victim feels uncomfortable confronting the harasser directly, the victim may submit their concerns to the Internal Complaints Committee (ICC) for resolution of their issues. Following that, the Internal Complaints Committee will give advise or assistance as needed, as well as conduct a quick investigation to settle the situation.</li>
</ol>
<p>&nbsp;</p>
<h3><b>Charge under sexual harassment law</b></h3>
<ol>
<li>An employee with a harassment complaint who is uncomfortable with or has exhausted the informal settlement alternatives may file a formal complaint with the Presiding Officer of the Management’s Internal Complaints Committee. Any aggrieved woman may file a complaint of sexual harassment at work with ICC within 3 (three) months of the date of the incident, or in the case of a series of incidents, within 3 (three) months of the last incident, and ICC may, for reasons to be recorded in writing, extend the time limit not exceeding three months if the circumstances of the case are satisfied.</li>
<li>In the event that such a complaint cannot be made in writing, the Presiding Officer or any&nbsp;<a href="https://muds.co.in/composition-and-duties-of-the-internal-complaints-committee/">member of the ICC</a>&nbsp;shall provide the woman with all reasonable help in writing the complaint.</li>
<li>Before launching an investigation under Section 11 of the Posh Act, the ICC may, at the request of the aggrieved woman, attempt to resolve the matter through conciliation, provided that no monetary settlement is made as a basis for conciliation, and where a settlement is reached, the ICC shall record the settlement and forward it to the employer for action as specified in the recommendation. Following that, the ICC will send the aggrieved ladies and the respondent with copies of the settlement as recorded, and no further investigation will be done.</li>
<li>If the aggrieved woman notify the ICC under the&nbsp;<a href="https://muds.co.in/posh-act-2013-sexual-harassment-women-workplace/">posh act</a>&nbsp;that any term or condition of the settlement reached under Section 10 (2) has not been met by the respondent, the ICC shall conduct an investigation or, as the case may be, forward the complaint to the police, and for the purpose of conducting an investigation, the ICC shall have the same powers as a Civil Court when trying a suit under the Code of Civil Procedure, 1908.</li>
<li>The ICC must finish the investigation under Section 11(1) within 90 days.&nbsp;</li>
</ol>
<h3><b>Any of the following can be used as a basis for disciplinary action:</b></h3>
<ol>
<li>Formal sincerely apologise;&nbsp;</li>
<li>Reduction to a lower grade;&nbsp;</li>
<li>Written warning with a copy kept in the employee’s file;&nbsp;</li>
<li>Suspension or termination of promotion for two years or more depending on the sensitivity of the case;&nbsp;</li>
<li>Any other appropriate disciplinary action as deemed</li>
</ol>
<h3><b>1. Report of the Inquiry under the sexual harassment law:</b></h3>
<p>The ICC must provide the inquiry report to the parties concerned within 10 days after the conclusion of the investigation.</p>
<h3><b>2. Penalties For False Or Intentionally False Complaints And False Evidence:</b></h3>
<p>If the ICC determines that the complainant made the complaint knowing it was false or produced any forged or misleading document, it may advise the employer to take action against the aggrieved women or the person who made the complaint with wrongful intent, as the case may be, in accordance with the provisions of the services rules applicable to her or him or, if no such service rules exist, in accordance with the provisions of the services rules applicable to her or him.</p>
<h3><b>3. Penalties for Making a False Or Malicious Complaint and Providing False Evidence:</b></h3>
<p>If the ICC determines that the complainant made the complaint knowing it was false or produced any forged or misleading document, it may advise the employer to take action against the aggrieved woman or the person who made the complaint with wrongful intent, as the case may be, in accordance with the provisions of the rules of the service applicable to her or him, or where no such service rules exist, in such a matrimonial situation.</p>
<h3><b><i>Annual report preparation: It must include the following information:</i></b></h3>
<ol>
<li>a) The number of sexual harassment complaints received each year;&nbsp;</li>
<li>b) The number of complaints resolved each year;</li>
<li>c) The number of cases pending for more than 90 days;&nbsp;</li>
<li>d) The number of workshops held to raise awareness about sexual harassment at workplace;&nbsp;</li>
<li>e) The type of action taken by the employer or district magistrate.</li>
</ol>
<h2><b>Security:</b></h2>
<p>The Company realises how difficult it is for a victim to come forward with sexual harassment at workplace complaints and respects the victim’s desire to keep the matter private.</p>
<h2><b>COMPLAINANT / VICTIM PROTECTION:&nbsp;</b></h2>
<p>The Company is dedicated to ensuring that no employee who reports harassment at workplace is subjected to retaliation in any way. Any retaliation will result in disciplinary action. When dealing with sexual harassment accusations, the Company will guarantee that the victim or witnesses are not mistreated or discriminated against. Anyone who abuses the system (for example, by intentionally making an accusation knowing it is false) will face disciplinary action as outlined in the Act.</p>
<h2><b>CONCLUSION:</b></h2>
<p>Finally, the Company reaffirms its commitment to creating a harassment-free and discrimination-free workplace where each worker is regarded with decency and respect. Posh act or sexual harassment law&nbsp;<a href="https://en.wikipedia.org/wiki/Sexual_Harassment_of_Women_at_Workplace_(Prevention,_Prohibition_and_Redressal)_Act,_2013#:~:text=The%20Sexual%20Harassment%20of%20Women,Parliament)%20on%203%20September%202012.">ensures safety of females</a>&nbsp;at online and offline workplaces.&nbsp;</p>
</div>
<div class="fusion-meta-info">&nbsp;</div>
<p>The post <a rel="nofollow" href="https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/">POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>NBFC Vs Micro Financing Institution: Things to Know before Setting Up Finance Company</title>
		<link>https://muds.co.in/nbfc-vs-micro-financing-institution/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Tue, 03 Nov 2020 08:41:41 +0000</pubDate>
				<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[NBFC]]></category>
		<category><![CDATA[NBFC Incorporation]]></category>
		<category><![CDATA[NBFC Registration]]></category>
		<category><![CDATA[NBFC Weekly Digest]]></category>
		<category><![CDATA[NBFC AA]]></category>
		<category><![CDATA[Nbfc aa license]]></category>
		<category><![CDATA[nbfc compliances]]></category>
		<category><![CDATA[nbfc registration]]></category>
		<category><![CDATA[nbfc registration procedure]]></category>
		<category><![CDATA[NBFC-Account aggregator license]]></category>
		<category><![CDATA[NBFC-ICC]]></category>
		<category><![CDATA[NBFC-MFI]]></category>
		<category><![CDATA[NBFC-P2P]]></category>
		<category><![CDATA[NBFCs]]></category>
		<category><![CDATA[NBFCs provide loans]]></category>
		<category><![CDATA[rbi nbfc registration]]></category>
		<guid isPermaLink="false">https://muds.co.in/nbfc-vs-micro-financing-institution-things-to-know-before-setting-up-finance-company/</guid>

					<description><![CDATA[<p>Non-Banking Financial Company or NBFC refers to a company registered under the Companies Act and regulated by the Reserve Bank of India. The main activities of an NBFC are related to small-time lending that includes giving loans and advances to manufacturers, savings and investment products, credit facility, trading at money market, transfer of money, managing [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/nbfc-vs-micro-financing-institution/">NBFC Vs Micro Financing Institution: Things to Know before Setting Up Finance Company</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Non-Banking Financial Company or NBFC refers to a company registered under the Companies Act and regulated by the Reserve Bank of India. The main activities of an <strong><a href="https://www.muds.co.in/nbfc-registration/" target="_blank" rel="noreferrer noopener">NBFC</a></strong> are related to small-time lending that includes giving loans and advances to manufacturers, savings and investment products, credit facility, trading at money market, transfer of money, managing portfolios of stocks, etc. All NBFCs are engaged in leasing, infrastructure finance, hire purchase, venture capital finance, housing finance, etc. NBFCs are generally not allowed to accept repayable deposits but they can accept term deposits.&nbsp;</p>
<h2><strong>What are Microfinance Companies?</strong></h2>
<p><strong><a href="https://muds.co.in/micro-finance-company-registration/" target="_blank" rel="noreferrer noopener">Microfinance Company</a></strong> or Institution (MFI) operate at a smaller level compared to NBFCs. It serves the similar motive of NBFCs that is, providing lending services to the underprivileged and impoverished sections of the society that do not have an access to traditional banking facilities. MFI lends small funds to the poor people that vary from Rs. 1000 to 20000 for starting a business. There have been complaints of MFIs regarding irregularities in their functioning as they charge relatively higher interest rates than the NBFCs. Besides, it mainly indulges in giving loans in contravention to the directives issued to such MFI to newly formed groups within 15 days of formation.</p>
<h3><strong>How they Differ from NBFCs?</strong></h3>
<p>The state governments have taken some steps to convert MFIs into NBFCs to ensure better regulation by RBI. Also, MFIs wants to get NBFC status because they will get access to wide-scale funding from banks.&nbsp;</p>
<p>Both <strong><a href="https://muds.co.in/micro-finance-company-registration/" target="_blank" rel="noreferrer noopener">NBFC and Microfinance Companies</a></strong> play an important role in rural areas. Where there is an absence of banks, the Non-banking financial institution can perform similar functions like a bank. Although, Non-Banking Financial company cannot issue checks drawn on itself it can facilitate term deposits and medium scale lending. On the other hand, MFI stands for Microfinance institutions which are established to operate at a smaller level than NBFC and provide small loans facilities to the underprivileged sections of the society. Unlike NBFCs, the MFIs are not regulated through any financial institution of the government.</p>
<h3><strong>Advantages of Opening an NBFC</strong></h3>
<ul>
<li>Ensures the smoother flow of credit for small debtors and so acts as an important tool of maintaining accuracy in the market.&nbsp;</li>
<li>Catering to a variety of clients in online/offline mode with a relatively smaller size of staff..</li>
<li>Reduces load on other lenders and hence loan processing time is also reduced leading to an overall increase in efficiency of the lending process.&nbsp;</li>
<li>Reduces the risk of lending bad loans as the profile of a customer is analysed by NBFCs before considering them eligibility for the loan.</li>
</ul>
<h3><strong>Getting NBFC License in India</strong></h3>
<p>The procedure to get the NBFC license is completed according to the master directions given by the Reserve Bank of India. The NBFC of this category should not have any client interface or a public fund. Let us understand the process of registration in the following section.</p>
<h3><strong>Eligibility Criteria for NBFC License and Registration</strong></h3>
<ul>
<li>The first step to be followed is the registration of the company according to the <a href="https://www.muds.co.in/nbfc-registration/" target="_blank" rel="noreferrer noopener"><strong>Companies Act, 2013</strong>.</a></li>
<li>The company must have some fundamental infrastructure that can support the offering of such services.&nbsp;</li>
<li>The company must have an adequate capital structure to seamlessly offer account aggregator services.&nbsp;</li>
<li>The general image of the company’s administration should be free or unbiased of public intrigue.&nbsp;&nbsp;</li>
<li>A prerequisite amount of Rs. 2 crores are required to apply for getting the certificate of registration from RBI. Without getting the <strong><a href="https://www.muds.co.in/nbfc-registration/" target="_blank" rel="noreferrer noopener">registration certificate the company</a></strong> won’t be allowed to operate as an NBFC.&nbsp;</li>
<li>The company should provide information related to its data innovation framework that can provide services of account aggregation.&nbsp;</li>
</ul>
<p>It is recommended that new entrepreneurs should reach out to firms specializing in the registration process. These firms have experts who can help the customers to get their NBFC license easily. Hiring an expert will help to compile all the necessary documents, filing the Application correctly, and getting all the verification and paperwork done on time. So, do not wait any more, just hire an expert from any reputed firm and get your <strong><a href="https://muds.co.in/nbfc-registration-process/" target="_blank" rel="noreferrer noopener">NBFC license</a></strong> as soon as possible.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/nbfc-vs-micro-financing-institution/">NBFC Vs Micro Financing Institution: Things to Know before Setting Up Finance Company</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Benefits Of Nidhi Company Registration</title>
		<link>https://muds.co.in/benefits-nidhi-company-registration/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 16 Jan 2018 08:34:59 +0000</pubDate>
				<category><![CDATA[Financial]]></category>
		<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[Nidhi company]]></category>
		<guid isPermaLink="false">https://muds.co.in/benefits-nidhi-company-registration/</guid>

					<description><![CDATA[<p>Nidhi Companies in India is registered with the objective of cultivating the habit of Thrift and Saving amongst its members with Mutual Benefit thereof. By structure, all these companies....</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/benefits-nidhi-company-registration/">Benefits Of Nidhi Company Registration</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Nidhi Companies in India is registered with the objective of cultivating the habit of Thrift and Saving amongst its members with Mutual Benefit thereof. By structure, all these companies take the form of a public <a href="https://muds.co.in/company-registration-2/">company registration</a> under the Companies Act.&nbsp; The activities of Nidhi Company is receiving deposits from and lending to its members for their mutual benefit and activities of these companies are limited to their members only. The core compliance planning of the RBI does not apply to them. They are not even required to get any license from the RBI to carry out their operations.</p>
<h2>Here is a list of the advantages of the Nidhi Companies in India:</h2>
<p><strong>1. Limited RBI Regulations</strong> &#8211; Owing to the non-dealing of the funds of any person except the members, the regulations imposed by the RBI on the <a href="https://muds.co.in/nidhi-company-registration-online/">Nidhi Companies</a> is limited. All these companies follow the Nidhi Rules, 2014 issued by the center with respect to the working and activities of the Nidhi Companies.</p>
<p><strong>2. Limited Capital Requirement</strong> &#8211; Initially, the minimum capital requirement was Rs. 5 lakhs INR for Nidhis decided by the Ministry of Corporate Affairs. It’s only after the Nidhi Rules, 2014 that commissioned that every Nidhi company should ensure Net Owned Funds of ten lakh rupees or more within 1 year of its registration.</p>
<p><strong>3. Ease of formation</strong> &#8211; Unlike the other <a href="https://muds.co.in/nbfc-registration/">NBFC</a>&#8216;s, the Nidhi Companies do not have to get a license from the RBI. All they have to do is incorporate themselves as a public company with the MCA, collect the required amount of money as per the Nidhi rules, 2014 and they are all set to go. The process of <a href="https://muds.co.in/nidhi-company-registration-online/">Nidhi company registration</a> is the same as registering as a <a href="https://muds.co.in/company-registration-2/">Public Limited Company</a>.</p>
<p><strong>4. Lower rate of credit</strong> &#8211; The loans given to the members here are at much lower rate of interest than the market rate. This helps you bring much more savings to the members.</p>
<p><strong>5. Helps in channelizing the funds</strong> &#8211; The goal of these companies is to promote the habit of saving and thrifts amongst the lower and the middle section of the society. These small sections of the population contributes to the funds of and avail the credit from the Nidhi Companies.</p>
<p><strong>6. No outsider interference</strong> &#8211; The Nidhi companies are formed by, managed by, and provide benefits to their members only. The outsider is not allowed to intervene in the working of the Nidhis, neither allowed to deposit money or avail credit from these companies.</p>
<p>Contact <a href="https://muds.co.in">Muds Management</a> now to know more about the benefits of <a href="https://muds.co.in/nidhi-company-registration-online/">Nidhi registration.</a></p>
<p>The post <a rel="nofollow" href="https://muds.co.in/benefits-nidhi-company-registration/">Benefits Of Nidhi Company Registration</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Prudential Norms and Operational Guidelines of NBFC &#8211; P2P</title>
		<link>https://muds.co.in/prudential-norms-operational-guidelines-nbfc-p2p/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Fri, 10 Nov 2017 10:54:59 +0000</pubDate>
				<category><![CDATA[Peer to Peer Lending]]></category>
		<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[NBFC]]></category>
		<category><![CDATA[P2P]]></category>
		<category><![CDATA[Prudential Norms]]></category>
		<guid isPermaLink="false">https://muds.co.in/prudential-norms-operational-guidelines-nbfc-p2p/</guid>

					<description><![CDATA[<p>NBFC-P2P shall maintain a Leverage Ratio not exceeding 2.The aggregate exposure of a lender to all borrowers at any point of time, across all P2Ps, shall be subject to a cap of 10,00,000/-.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/prudential-norms-operational-guidelines-nbfc-p2p/">Prudential Norms and Operational Guidelines of NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2><strong>Prudential Norms :- </strong></h2>
<ul>
<li><a href="https://muds.co.in/nbfc-peer-to-peer-lending-registration/">NBFC-P2P</a> shall maintain a Leverage Ratio not exceeding 2.</li>
<li>The aggregate exposure of a lender to all borrowers at any point of time, across all P2Ps, shall be subject to a cap of 10,00,000/-.</li>
<li>The aggregate loans taken by a borrower at any point of time, across all P2Ps, shall be subject to a cap of 10,00,000/-.</li>
<li>The exposure of a single lender to the same borrower, across all P2Ps, shall not exceed&nbsp; 50,000/-.</li>
<li>The maturity of the loans shall not exceed 36 months.</li>
<li>P2Ps shall obtain a certificate from the borrower or lender, as applicable, that the limits prescribed above are being adhered to.</li>
</ul>
<h3><strong>Operational Guidelines</strong></h3>
<p>(1) NBFC-P2P shall have a Board approved policy in place &#8211;</p>
<ul>
<li>Setting out the eligibility criteria for participants on it.</li>
<li>Determining the pricing of services provided by it.</li>
<li>Setting out the rules for matching lenders with borrowers in an equitable and non-discriminatory manner.</li>
</ul>
<p>(2) The outsourcing of any activity by NBFC-P2P does not diminish its obligations and it shall be responsible for the actions of its service providers including recovery agents and the confidentiality of information pertaining to the participant that is available with the service providers.</p>
<p>(3) No loan shall be disbursed unless the individual lender/s have approved the individual recipient/s of the loan and all concerned participants have signed the loan contract.</p>
<p><strong>Read Also: <a href="https://muds.co.in/what-are-different-nbfc-types-and-rules-for-filing-returns/">What Are Different Types of NBFC and Rules for Filing Returns?</a></strong></p>
<p>Getting the NBFC P2P registration from RBI is considered quite profitable these days due to their excellent lending model and low risks. However, understanding all the norms and regulations related to <a href="https://muds.co.in/nbfc-peer-to-peer-lending-registration/">NBFC P2P registration</a> and operation could become trickier for entrepreneurs and businessmen. Hence, collaborating with a reputed legal firm becomes necessary to get assistance in the registration process and post-registration compliance norms. These firms have experts who will file the error-free application for registration and take up all the registration formalities on behalf of the business. This saves a lot of work hours and money for the entrepreneurs applying for registration.</p>
<p>It was rightly said by Ralph Waldo Emerson– “Every Wall is a Door”<br />
Thus, take a step forward to open the door for the new FDI norms.</p>
<p><strong><a href="https://in.linkedin.com/in/shweta-gupta-466b9736">Shweta Gupta</a> from <a href="https://muds.co.in/" target="_blank" rel="noopener noreferrer">MUDS</a></strong> is recognized amongst the most-respected, knowledgeable, and yes, pocket-friendly as well.</p>
<p>Why not give them a call right now at +919599653306&nbsp;and start a conversation immediately.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/prudential-norms-operational-guidelines-nbfc-p2p/">Prudential Norms and Operational Guidelines of NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Scope of Activities of an NBFC &#8211; P2P</title>
		<link>https://muds.co.in/scope-activities-nbfc-p2p/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Fri, 10 Nov 2017 09:11:59 +0000</pubDate>
				<category><![CDATA[Peer to Peer Lending]]></category>
		<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[NBFC]]></category>
		<category><![CDATA[P2P]]></category>
		<category><![CDATA[peer to peer]]></category>
		<category><![CDATA[Scope]]></category>
		<guid isPermaLink="false">https://muds.co.in/scope-activities-nbfc-p2p/</guid>

					<description><![CDATA[<p>1. An NBFC-P2P shall - act as an intermediary providing an online marketplace or platform to the participants involved in Peer to Peer lending; not raise deposits as defined by .....</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/scope-activities-nbfc-p2p/">Scope of Activities of an NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>1.<strong> A NBFC &#8211; P2P shall</strong>&#8211;</h2>
<ul>
<li>act as an intermediary providing an online marketplace or platform to the participants involved in Peer to Peer lending;</li>
<li>not raise deposits as defined by or under Section 45I (bb) of the Act or the Companies Act, 2013;</li>
<li>not lend on its own;</li>
<li>not provide or arrange any credit enhancement or credit guarantee;</li>
<li>not facilitate or permit any secured lending linked to its platform; i.e. only clean loans will be permitted;</li>
<li>not hold, on its own balance sheet, funds received from lenders for lending, or funds received from borrowers for servicing loans; or such funds as stipulated in paragraph 9;</li>
<li>not cross sell any product except for loan specific insurance products;</li>
<li>not permit international flow of funds;</li>
<li>ensure adherence to legal requirements applicable to the participants as prescribed under relevant laws.</li>
<li>store and process all data relating to its activities and participants on hardware located within India.</li>
</ul>
<h2>2. <strong>Further</strong>, NBFC- P2P shall &#8211;</h2>
<ul>
<li>undertake due diligence on the participants;</li>
<li>undertake credit assessment and risk profiling of the borrowers and disclose the same to their prospective lenders;</li>
<li>require prior and explicit consent of the participant to access its credit information;</li>
<li>undertake documentation of loan agreements and other related documents;</li>
<li>provide assistance in disbursement and repayments of loan amount;</li>
<li>render services for recovery of loans originated on the platform.</li>
</ul>
<p>NBFC &#8211; P2P shall not undertake any activity other than those stated in paras 6(1) and 6(2) of these Directions. Deployment of investible funds by an <a href="https://muds.co.in/nbfc-peer-to-peer-lending-registration/">NBFC P2P</a> in instruments specified by the Bank, not for trading, shall however be permitted.</p>
<p>Like <a href="https://muds.co.in/nbfc-registration/"><b>NBFC registration</b></a> for all entities, all NBFC-P2P Companies should also be registered under the Companies Act, 2013 or in case of existing Company under previous Company Act.</p>
<p>For the <a href="https://muds.co.in/nbfc-incorporation/">NBFC incorporation</a> of a prospective NBFC-P2P, the company is required to make an application for registration to the Department of Non-Banking Regulation of the RBI.</p>
<p>No NBFC-P2P shall commence or carry on the business of a Peer to Peer Lending Platform without obtaining a Certificate of Registration (CoR) from the RBI. Thus, <a href="https://muds.co.in/nbfc-peer-to-peer-lending-registration/"><b>Peer to Peer lending registration</b></a> is subject to a company fulfilling all the conditions specified by the RBI.</p>
<p>The Reserve Bank of India issued a Notification dated August 24, 2017 in terms of sub-clause (iii) of clause (f) of section 45I of the Reserve Bank of India Act, 1934.&nbsp;&nbsp;</p>
<p>This notification enumerates the Directions for compliance by every <a href="https://muds.co.in/non-banking-financial-company/">Non-Banking Financial Company</a> that carries on the business of a Peer to Peer Lending Platform.</p>
<p>These Directions are known as the Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 and came into force with immediate effect.</p>
<p>This notification is an extensive statement that outlines in detail the various rules and regulations that all existing and prospective entities carrying on or intending to carry on the business of Peer-to-Peer (P2P) lending, commonly known as NBFC-P2P, will have to comply with.</p>
<p>An NBFC-P2P can act only as an intermediary that provides an online platform to the participants, that is, borrowers and lenders, involved in P2P lending. It must also ensure compliance to legal requirements applicable to the participants as mandated under relevant laws (including the KYC Directions prescribed by RBI). It is also required to store and process all data relating to its and its participants activities on hardware located within India.</p>
<p>The Master Directions, thus, provide a framework for the registration and operation of NBFC-P2Ps in India and some of the important disclosure, code and varied requirements to be followed by NBFC – P2P are mentioned below.</p>
<p>It was rightly said by Ralph Waldo Emerson– “Every Wall is a Door”<br />
Thus, take a step forward to open the door for the new FDI norms.</p>
<p><strong><a href="https://in.linkedin.com/in/shweta-gupta-466b9736">Shweta Gupta</a> from <a href="https://muds.co.in/" target="_blank" rel="noopener noreferrer">MUDS MANAGEMENT</a></strong> is recognized among the most-respected, knowledgeable and yes, pocket-friendly as well.</p>
<p>Why not give them a call right now at <strong>+91<span class="mon-icn-txt">9599653306</span></strong>&nbsp;and start a conversation immediately.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/scope-activities-nbfc-p2p/">Scope of Activities of an NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<item>
		<title>Fund Transfer Mechanism under NBFC &#8211; P2P</title>
		<link>https://muds.co.in/fund-transfer-mechanism-nbfc-p2p/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 07 Nov 2017 08:26:00 +0000</pubDate>
				<category><![CDATA[Peer to Peer Lending]]></category>
		<category><![CDATA[Fund Transfer Mechanism]]></category>
		<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[NBFC]]></category>
		<category><![CDATA[P2P]]></category>
		<guid isPermaLink="false">https://muds.co.in/fund-transfer-mechanism-nbfc-p2p-2/</guid>

					<description><![CDATA[<p>Fund transfer between the participants on the Peer to Peer Lending Platform shall be through escrow account mechanisms which will be operated by a trustee. At least two escrow accounts.....</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/fund-transfer-mechanism-nbfc-p2p/">Fund Transfer Mechanism under NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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										<content:encoded><![CDATA[<p>Fund transfer between the participants on the<strong>&nbsp;<a href="https://muds.co.in/peer-peer-lending-business-india/">Peer to Peer Lending Platform</a></strong> shall be through escrow account mechanisms which will be operated by a trustee. At least two escrow accounts, one for funds received from lenders and pending disbursal, and the other for collections from borrowers, shall be maintained. The trustee shall mandatory be promoted by the bank maintaining the escrow accounts. All fund transfers shall be through and from bank accounts and cash transaction is strictly prohibited. The mechanism as described in the Annex-I may be adopted by the <a href="https://muds.co.in/nbfc-peer-to-peer-lending-registration/">NBFC-P2P</a>.</p>
<p><a href="https://muds.co.in/wp-content/uploads/2017/11/mechanism.jpg"><img fetchpriority="high" decoding="async" class="size-full wp-image-2047" src="https://muds.co.in/wp-content/uploads/2017/11/mechanism.jpg" alt="Fund Transfer Mechanism" width="717" height="840"></a></p>
<p>&nbsp;</p>
<p>It was rightly said by Ralph Waldo Emerson– “Every Wall is a Door”<br />
Thus, take a step forward to open the door for the new FDI norms.</p>
<p><a href="https://in.linkedin.com/in/shweta-gupta-466b9736">Shweta Gupta</a> from <a href="https://muds.co.in/" target="_blank" rel="noopener noreferrer">MUDS MANAGEMENT</a> is recognized among the most-respected, knowledgeable and yes, pocket-friendly as well.</p>
<p>Why not give them a call right now at <a href="tel:919599653306">+91 9599653306</a> and start a conversation immediately.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/fund-transfer-mechanism-nbfc-p2p/">Fund Transfer Mechanism under NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Disclosure/Code/Requirement to be followed by NBFC &#8211; P2P</title>
		<link>https://muds.co.in/disclosurecoderequirement-to-be-followed-by-nbfc-p2p/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 07 Nov 2017 04:39:56 +0000</pubDate>
				<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[NBFC Incorporation]]></category>
		<category><![CDATA[code]]></category>
		<category><![CDATA[Disclosure]]></category>
		<category><![CDATA[NBFC]]></category>
		<category><![CDATA[nbfc registration]]></category>
		<category><![CDATA[NBFC-P2P]]></category>
		<category><![CDATA[P2P]]></category>
		<category><![CDATA[Peer to Peer lending registration]]></category>
		<category><![CDATA[to the borrower]]></category>
		<category><![CDATA[to the lender]]></category>
		<guid isPermaLink="false">https://muds.co.in/disclosurecoderequirement-to-be-followed-by-nbfc-p2p/</guid>

					<description><![CDATA[<p>NBFC-P2P shall ensure that the providing of services to a participant, who has applied for availing of such services, is backed by appropriate agreements between the participants....</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/disclosurecoderequirement-to-be-followed-by-nbfc-p2p/">Disclosure/Code/Requirement to be followed by NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2><strong>Transparency and Disclosure Requirements</strong></h2>
<ol type="1">
<li><strong>An NBFC-P2P shall be required to disclose the following:</strong>
<ol>
<li>to the lender
<ol type="a">
<li>details about the borrower/s including personal identity, required amount, interest rate sought and credit score as arrived by the NBFC-P2P.</li>
<li>details about all the terms and conditions of the loan, including likely return, fees and taxes;</li>
</ol>
</li>
<li>to the borrower
<ul>
<li>details about the lender/s including proposed amount, interest rate offered but excluding personal identity and contact details;</li>
</ul>
</li>
<li>publicly disclose on its website
<ol>
<li>overview of credit assessment/score methodology and factors considered;</li>
<li>disclosures on usage/protection of data;</li>
<li>grievance redressal mechanism;</li>
<li>portfolio performance including share of non-performing assets on a monthly basis and segregation by age; and</li>
<li>its broad business model.</li>
</ol>
</li>
</ol>
</li>
<li>NBFC-P2P shall ensure that the providing of services to a participant, who has applied for availing of such services, is backed by appropriate agreements between the participants and the NBFC-P2P. The agreements shall categorically specify all the terms and conditions among the borrower, the lender and the NBFC-P2P.</li>
<li>The interest rates displayed on the platform shall be in Annualized Percentage Rate (APR) format.</li>
</ol>
<h2><strong>Participant Grievance Redressal</strong></h2>
<ol type="1">
<li>An NBFC-P2P shall put in place a Board approved policy to address participant grievances/complaints. Complaints shall be handled/ disposed of by NBFC-P2P within such time and in such manner as provided for in its Board approved policy, but in any case not beyond a period of one month from the date of receipt.</li>
<li>At the operational level, NBFC-P2P shall display the following information prominently, for the benefit of participants, on the website:
<ol type="a">
<li>the name and contact details (Telephone / Mobile Nos. as also email address) of the Grievance Redressal Officer who can be approached for resolution of complaints against the NBFC-P2P.</li>
<li>that if the complaint / dispute is not redressed within a period of one month, the participant may appeal to the Customer Education and Protection Department of the Bank.</li>
</ol>
</li>
</ol>
<h2><strong>Information Technology Framework, Data Security and Business Continuity Plan</strong></h2>
<ol type="1">
<li>Business of an NBFC-P2P shall be primarily Information Technology (IT) driven. The technology should be scalable to handle growth in business.</li>
<li>There should be adequate safeguards built in its IT systems to ensure that it is protected against unauthorized access, alteration, destruction, disclosure or dissemination of records and data. The Bank may from time to time, prescribe technical specifications, as deemed fit.</li>
<li>NBFC-P2P should have a Board approved Business Continuity Plan in place for safekeeping of information and documents and servicing of loans for full tenure in case of closure of platform.</li>
<li>Information System Audit of the internal systems and processes shall be in place and shall be conducted at least once in two years by CISA certified external auditors. Report of the external auditor shall be submitted to the Regional Office of the Department of Non-Banking Supervision of the Bank, under whose jurisdiction the Registered Office of the NBFC-P2P is located, within one month of submission of the report by the external auditor.</li>
<li>There shall be reasonable arrangements in place to ensure that loan agreements facilitated on the platform will continue to be managed and administered by a third party in accordance with the contract terms, if the NBFC-P2P ceases to carry on the P2P activity.</li>
<li>NBFC-P2P would be required to conform with <i>Master Direction DNBS.PPD. No. 04/66.15.001/2016-17 dated June 8, 2017</i> on Information Technology Framework for NBFC Sector, as stipulated in Section A from inception</li>
</ol>
<h3><strong>Fit and Proper Criteria</strong></h3>
<ol type="a">
<li>An NBFC-P2P shall
<ol type="1">
<li>ensure that a policy is put in place, with the approval of the Board of Directors, setting out ‘Fit and Proper’ criteria to be met by its directors.</li>
<li>ensure that Directors meet the fit and proper criteria at the time of their appointment and on an ongoing basis, certify and inform the same to the Bank on a half-yearly basis;</li>
<li>obtain a declaration and undertaking from the Directors giving additional information.</li>
<li>obtain a Deed of Covenants signed by the Directors.</li>
<li>advise the Bank of any change of Directors, or key management personnel, and issue a certificate from the Managing Director/CEO of the NBFC-P2P that fit and proper criteria in selection of the Directors have been followed. The statement must reach the Regional Office of the Department of Non-Banking Supervision of the Bank under whose jurisdiction the Registered Office of the NBFC-P2P is located, within 15 days of the change. An annual statement shall be submitted by the CEO of the NBFC-P2P to the said Regional Office, giving the names of its Directors for the quarter ending on March 31, which should be certified by the auditors.The Bank, if it deems fit and in public interest, may independently assess whether the directors are, individually or collectively, fit and proper and the NBFC-P2P shall remove the concerned director/s, on being advised by the Bank to do so.</li>
</ol>
</li>
</ol>
<h2><strong>Requirement to obtain prior approval of the Bank for allotment of shares, acquisition or transfer of control of NBFC-P2P</strong></h2>
<p>Prior written permission of the Bank shall be required for –</p>
<ol type="a">
<li>any allotment of shares which will take the aggregate holding of an individual or group to equivalent of 26 per cent and more of the paid up capital of the NBFC-P2P; <strong>Explantation:</strong> For the purpose of this paragraph, the term
<ol>
<li>&#8220;holding&#8221; refers to both direct and indirect holding, beneficial or otherwise. The holding will be computed with reference to the holding of the applicant, relatives (where the applicant is a natural person) and associated enterprises.</li>
<li>&#8220;relative&#8221; has the same meaning as assigned under section 2(77) of the Companies Act, 2013.</li>
<li>&#8220;associate enterprise” has the same meaning as assigned to it in Explanation I to Section 12B of the Banking Regulation Act, 1949.</li>
</ol>
</li>
<li>any takeover or acquisition of control of an NBFC-P2P, which may or may not result in change of management;</li>
<li>any change in the shareholding of an NBFC-P2P, including progressive increases over time, which would result in acquisition by/ transfer of shareholding to, any entity, of 26 per cent or more of the paid up equity capital of the NBFC-P2P; <strong>Provided that,</strong> prior approval would not be required in case of any shareholding going beyond 26% due to buyback of shares / reduction in capital where it has approval of a competent Court. The same is to be reported to the Bank not later than one month from its occurrence;</li>
<li>any change in the management of the NBFC-P2P which would result in change in more than 30 per cent of the Directors, excluding independent Directors;</li>
<li>any change in share holding that will give the acquirer a right to nominate a Director.</li>
</ol>
<h3><strong>Application for Prior approval</strong></h3>
<ol type="a">
<li>An NBFC-P2P shall submit an application, on the company letter head, for obtaining prior approval of the Bank, along with the following documents:
<ol>
<li>Information about the proposed Directors/ shareholders</li>
<li>Sources of funds of the proposed shareholders acquiring the shares in the NBFC-P2P;</li>
<li>Declaration by the proposed Directors/ shareholders that they are not associated with any unincorporated body that is accepting deposits;</li>
<li>Declaration by the proposed Directors/ shareholders that they are not associated with any company, the application for CoR of which has been rejected by the Bank;</li>
<li>Declaration by the proposed Directors/ shareholders that they have not been convicted of any crime and that there are no pending criminal cases against them, including proceedings initiated under section 138 of the Negotiable Instruments Act,1881; and</li>
<li>Bankers&#8217; Report on the proposed Directors / shareholders.</li>
</ol>
</li>
</ol>
<h2><strong>Public Notice about Change in Control/ Management</strong></h2>
<ol type="1">
<li>Applications in this regard shall be submitted to the Regional Office of the Department of Non-Banking Supervision of the Bank where the company is registered.</li>
<li>A public notice of at least 30 days shall be given before effecting the sale of, or transfer of the ownership by sale of shares, or transfer of control, whether with or without sale of shares. Such public notice shall be given by the NBFC-P2P and also by the other party or jointly by the parties concerned, after obtaining the prior permission of the Bank.</li>
<li>The public notice shall indicate the intention to sell or transfer ownership/control, the particulars of transferee and the reasons for such sale or transfer of ownership/ control. The notice shall be published in at least one leading national and in one leading local (covering the place of registered office) vernacular newspaper.</li>
</ol>
<h3><strong>Information with respect to change of address, directors, auditors, etc. to be submitted</strong></h3>
<ol type="1">
<li>Every NBFC-P2P shall communicate, not later than one month from the occurrence of any change in:
<ol type="a">
<li>the complete postal address, telephone number/s and fax number/s of the registered / corporate office;</li>
<li>the residential addresses of the Directors of the company;</li>
<li>the names and office address of the auditors of the company; and</li>
<li>the specimen signatures of the officers authorised to sign on behalf of the NBFC-P2P to the Regional Office of the Department of Non-Banking Supervision of the Bank within whose jurisdiction the Registered Office of the NBFC-P2P is located.</li>
</ol>
</li>
</ol>
<h3><strong>Reporting Requirements</strong></h3>
<ol type="1">
<li>The Bank may, from time to time, prescribe return/s to be submitted by NBFC-P2P, as it deems fit.</li>
<li>The following quarterly statements shall be submitted to the aforesaid Regional Office within 15 days after the quarter to which these relate.</li>
<li>A statement, showing the number and amount in respect of loans;</li>
<li>a. disbursed during the quarter;<br />
b. closed during the quarter; and<br />
c. outstanding at the beginning and at the end of the quarter, including the number of lenders and borrowers outstanding as at the end of the quarter</li>
<li>The amount of funds held in the Escrow Account, bifurcated into funds received from lenders and funds received from borrowers, with credit and debit summations for the quarter.</li>
<li>Number of complaints outstanding at beginning and at end of quarter, and disposed of during the quarter, bifurcated as received from<br />
a. lenders and<br />
b. borrowers.</li>
<li>The Leverage Ratio, with details of its numerator and denominator.</li>
</ol>
<p>Like <a href="https://www.muds.co.in/nbfc-registration/">NBFC registration</a> for all entities, all NBFC-P2P Companies should also be registered under the Companies Act, 2013 or in case of existing Company under previous Company Act.</p>
<p>For the NBFC incorporation of a prospective NBFC-P2P, the company is required to make an application for registration to the Department of Non-Banking Regulation of the RBI.</p>
<p>No NBFC-P2P shall commence or carry on the business of a Peer to Peer Lending Platform without obtaining a Certificate of Registration (CoR) from the RBI. Thus, <a href="https://muds.co.in/nbfc-peer-to-peer-lending-registration/">Peer to Peer lending registration</a> is subject to a company fulfilling all the conditions specified by the RBI.</p>
<p>The Reserve Bank of India issued a Notification dated August 24, 2017 in terms of sub-clause (iii) of clause (f) of section 45I of the Reserve Bank of India Act, 1934.</p>
<p>This notification enumerates the Directions for compliance by every Non-Banking Financial Company that carries on the business of a Peer to Peer Lending Platform.</p>
<p>These Directions are known as the Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 and came into force with immediate effect.</p>
<p>This notification is an extensive statement that outlines in detail the various rules and regulations that all existing and prospective entities carrying on or intending to carry on the business of Peer-to-Peer (P2P) lending, commonly known as NBFC-P2P, will have to comply with.</p>
<p>An NBFC-P2P can act only as an intermediary that provides an online platform to the participants, that is, borrowers and lenders, involved in P2P lending. It must also ensure compliance to legal requirements applicable to the participants as mandated under relevant laws (including the KYC Directions prescribed by RBI). It is also required to store and process all data relating to its and its participants activities on hardware located within India.</p>
<p>The Master Directions, thus, provide a framework for the registration and operation of NBFC-P2Ps in India and some of the important disclosure, code and varied requirements to be followed by NBFC – P2P are mentioned below.</p>
<blockquote><p>It was rightly said by Ralph Waldo Emerson– “Every Wall is a Door”<br />
Thus, take a step forward to open the door for the new FDI norms.</p></blockquote>
<p>Shweta Gupta from <a href="http://muds.co.in">MUDS</a> is recognized amongst the most-respected, knowledgeable and yes, pocket-friendly as well.</p>
<p>Why not give them a call right now at +91 9599653306 and start a conversation immediately.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/disclosurecoderequirement-to-be-followed-by-nbfc-p2p/">Disclosure/Code/Requirement to be followed by NBFC &#8211; P2P</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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