Raising public deposits is a popular way by which NBFC's look to raise capital to meet their own funding requirements. Given that public deposits from NBFC's are not secure, the Reserve Bank Of India (RBI) authorizes only select companies to raise money by way of Public Deposits.
What this means is that all NBFC Companies are not allowed to raise money from the Public.
Here is a list of companies that are allowed to raise money by way of Deposits.
Achal Finance Ltd
Shaan Finance Limited
Trikaal Leasing And Finance Ltd
Chemm Finance Ltd
Diganta Investments And Finance Co. Ltd
Shriram City Union Finance Limited
Shriram Transport Finance Company Limited
Tamilnadu Transport Development Finance Corporation Limited
Galada Finance Limited
Savery Transport Finance Limited
Deccan Finance Limited
Fullerton India Credit Company Limited
Karur Gayathiri Finance Limited
Integrated Finance Company Limited
Ever Trust Finance (INDIA) Limited
Sakthi Finance Limited
Texcellent Fin-Invest Ltd
Tindo Asia Finance Limited
Sundaram Finance Limited
Amilnadu Urban Finance And Infrastructure
Development Corporation Limited
Sundaram Finance Limited
Sri Vijayaram Hire Purchase And Leasing Finance Limited
Tamil Nadu Power Finance And Infrastructure Development Corporation Limited
Mahindra And Mahindra Finance
West Bengal Infrastructure Development Finance Corpn
West Bengal Industrial Development Corpn. Ltd
The Peerless General Finance & Investment Company Ltd
5) New Delhi
Jindal Fincap Ltd.
Majha Investment Ltd.
Naini Fincap Limited
Parv Financiers Ltd.
Pee Jay Finance Co. Ltd.
Pitampura Leasing & Housing Finance Ltd.
Samrat Motor Finance Ltd.
Shane Haryana Finlease Ltd.
The Delhi Safe Deposit Company Ltd.
Trans Asia Auto & General Finance Ltd.
Umeed Investments Ltd.
Vivek Motor Finance Ltd.
Rakshit Motor & General Finance Ltd.
Umeed Leasing & Finance Ltd. (Formerly Umeed Leasing & Finance Pvt.
Auto & Household Finance (India) Limited
Fincap Financial Corporation Limited
Apart from the list mentioned above, there are many other NBFCs that are authorized to raise fixed deposits. The above list is only selective. The Reserve Bank of India keeps updating the list from time to time. We wish to emphasize once again that not all NBFC's are allowed to raise money and are list is not complete by any means.
Does registration with the RBI allow you to raise deposits?
No, a mere registration with the RBI does not allow a company to raise money by way of fixed deposits. In fact, we suggest that when investors wish to apply for fixed deposits, they do so only from the larger and well managed NBFC fixed deposits.
These should be AAA rated by the rating agencies in the country. From among the host of NBFCs you can pick companies like Mahindra Finance and Bajaj Finance. These are highly rated AAA deposits.
How to apply to the RBI for license to raise public deposits?
The application can be done by an online mechanism and thereafter one can send the physical formalong with the documents to the regional office of the RBI.
The application can be checked and viewed online.These days it not a very cumbersome process to get registration, though you need to comply with the Reserve Bank of India guidelines from time to time.