{"id":8960,"date":"2018-02-28T08:47:21","date_gmt":"2018-02-28T08:47:21","guid":{"rendered":"https:\/\/legaldesk.com\/?p=8960"},"modified":"2026-02-11T11:55:45","modified_gmt":"2026-02-11T11:55:45","slug":"nbfc-high-risk-category","status":"publish","type":"post","link":"https:\/\/webdemo.d-apps.in\/legaldesk\/nbfc-high-risk-category","title":{"rendered":"Govt. Of India Considers 9,491 NBFCs High-Risk"},"content":{"rendered":"

Due to non-compliance with the Prevention of Money Laundering Act (PMLA), the Central Government’s Financial Intelligence Unit (FIU) has placed 9,491 non-banking financial companies (NBFC<\/a>) under the high-risk category.<\/span><\/p>\n

Under the Prevention of Money Laundering Act (PMLA), NBFCs which include cooperative banks were required to provide details regarding their financial operations and transactions to the FIU. According to the FIU, these 9,491 NBFCs did not comply with the conditions of appointing a principal officer responsible to check and report suspicious transactions and cash transactions of \u20b9 10 Lakhs and above and report it to the agency. <\/span><\/p>\n

\"NBFC<\/a><\/span>
\n<\/span>The publication of names was considered a primary step by the FIU to make it clear to the public that such agencies were not law compliant. The list of NBFCs has been updated from post-demonetisation until January 2018. <\/span><\/p>\n

During September 2017, there were 11,469 NBFCs. Under the Prevention of Money Laundering Act<\/a> (PMLA), all NBFCs were asked to appoint a principal officer and report all suspicious and cash transactions over \u20b9 10 lakh to the FIU. But these companies were found non-compliant to the rules as on January 31, 2018.<\/span><\/p>\n

Some popular names include Moody’s Investment Company India Pvt. Ltd., Upasana Finance, Dlf Finvest Limited, Bombay Gas Co Ltd, Srestha Finvest Ltd, The Kamdhenu Finance Company Private Limited, Tribhuvan Finlease & Developers Pvt Ltd among several others. <\/span><\/p>\n

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Click Here <\/span> to check out the list of High-Risk NBFCs.<\/span><\/p>\n<\/blockquote>\n

Post-demonetisation, NBFCs along with several other urban and rural cooperative banks were placed under the scanner of the Income Tax (IT) Department and the Enforcement Directorate for illegally converting banned currency notes. According to a Crisil report (Research agency) \u00a0released last November, the share of non-banking financiers in the loan market was expected to go up to 19% by fiscal 2020 from the prevailing 16% in 2016-17.<\/span><\/p>\n

Duties Of Principal Officer<\/span><\/h1>\n

A Principal officer is responsible for:<\/span><\/i><\/p>\n