Why in News?
Airtel Money, a subsidiary of telecom major Bharti Airtel, has received a Certificate of Registration (CoR) from the Reserve Bank of India (RBI) to operate as a Type II Non-Deposit Taking Non-Banking Financial Company (NBFC).
What RBI Approved
- Airtel Money can now function as a Type II NBFC (Non-Deposit Accepting).
- It is authorised to undertake financial activities permitted under RBI regulations for such NBFCs.
What is a Type II NBFC (Non-Deposit Taking)?
- Cannot accept public deposits.
- Can provide financial services such as:
- Lending
- Payments-related financial services
- Other permitted non-banking financial activities
Type II classification generally involves entities with moderate asset size and regulatory requirements, compared to systemically important NBFCs.
Regulatory Framework
- NBFCs regulated by RBI under:
- RBI Act, 1934
- NBFC regulatory framework
