Airtel Money Gets RBI Approval to Operate as NBFC

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