Reserve Bank of India (RBI) has granted Piramal Capital & Housing Finance (now Piramal Finance) a Certificate of Registration (CoR) under Section 45-IA of the RBI Act, 1934, to function as a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC). With this, Piramal Finance has officially transitioned from a Housing Finance Company (HFC) to an NBFC-ICC.
Key Highlights
RBI Approval:
- The Certificate of Registration (CoR) allows Piramal Finance to commence operations as an NBFC-ICC.
- The company will now operate without accepting public deposits.
Exit from Housing Finance:
- With the new approval, Piramal Finance has surrendered its Housing Finance Company (HFC) registration.
- It will no longer operate as a Housing Finance Company.
Corporate Structure:
- Piramal Finance (formerly Piramal Capital & Housing Finance) is a wholly-owned subsidiary of Piramal Enterprises Ltd.
Strategic Realignment:
- Moving from HFC to NBFC-ICC allows Piramal Finance to diversify its lending and investment activities beyond housing sector.
Business Expansion:
- NBFC-ICC status enables the company to tap into broader financial segments, such as consumer finance, MSME loans, and structured credit.
What is an NBFC-ICC?
NBFC-ICC stands for Non-Banking Financial Company – Investment and Credit Company. These entities serve as a bridge between traditional banks and new-age financial needs, offering diverse financial services.
Key Characteristics of NBFC-ICC:
| Feature | Description |
| Regulatory Body | Registered under Companies Act, 1956 and regulated by the RBI |
| Financial Services | Provide loans, advances, asset finance, and invest in securities |
| Principal Business | Includes lending and investment, not accepting public deposits |
| Compliance | Operates under strict RBI norms ensuring transparency and consumer protection |
| Role in Economy | Complements banks, focuses on diverse customer segments and financial inclusion |