45I. Definitions.-
In this Chapter, unless the context otherwise requires,–
(a) ‘‘business of a non-banking financial institution’’
means carrying on of the business of a financial institution
referred to in clause (c) and includes business of a non-banking
financial company referred to in clause (f);
(aa) ‘‘company’’ means a company as
defined in section 3 of the Companies Act, 1956 and includes
a foreign company within the meaning of section 591 of that
Act:
(b) ‘‘corporation’’ means a corporation
incorporated by an Act of any legislature;
(bb) ‘‘deposit’’ includes and shall
be deemed always to have included any receipt of money by
way of deposit or loan or in any other form, but does not
include,–
(i) amounts raised by way of share capital;
(ii) amounts contributed as capital by partners of a firm;
(iii) amounts received from a scheduled bank or a co-operative
bank or any other banking company as defined in clause (c)
of section 5 of the Banking Regulation Act, 1949;
(iv) any amount received from,–
(a) *[Item (a) - containing the words “the Development
Bank” - omitted by the Industrial Development Bank (Transfer
of Undertaking and Repeal) Act, 2003 (Act No.53 of 2003),
Sec. 4.]
(b) a State Financial Corporation,
(c) any financial institution specified in or under section
6A of the Industrial Development Bank of India Act, 1964,
or
(d) any other institution that may be specified by the Bank
in this behalf:
(v) amounts received in the ordinary course of business, by
way of–
(a) security deposit,
(b) dealership deposit,
(c) earnest money,
(d) advance against orders for goods, properties or services,
(vi) any amount received from an individual or a firm or
an association of individuals not being a body corporate,
registered under any enactment relating to money lending which
is for the time being in force in any State; and
(vii) any amount received by way of subscriptions in respect
of a chit.
Explanation I.– ‘‘Chit’’ has
the meaning assigned to it in clause (b) of section 2 of the
Chit Funds Act, 1982.
Explanation II.– Any credit given by a seller to a buyer
on the sale of any property (whether movable or immovable)
shall not be deemed to be deposit for the purposes of this
clause;
(c) ‘‘financial institution’’ means
any non-banking institution which carries on as its business
or part of its business any of the following activities, namely:–
(i) the financing, whether by way of making loans or advances
or otherwise, of any activity other than its own:
(ii) the acquisition of shares, stock, bonds, debentures or
securities issued by a Government or local authority or other
marketable securities of a like nature:
(iii) letting or delivering of any goods to a hirer under
a hire-purchase agreement as defined in clause (c) of section
2 of the Hire-Purchase Act, 1972:
(iv) the carrying on of any class of insurance business;
(v) managing, conducting or supervising, as foreman, agent
or in any other capacity, of chits or kuries as defined in
any law which is for the time being in force in any State,
or any business, which is similar thereto;
(vi) collecting, for any purpose or under any scheme or arrangement
by whatever name called, monies in lumpsum or otherwise, by
way of subscriptions or by sale of units, or other instruments
or in any other manner and awarding prizes or gifts, whether
in cash or kind, or disbursing monies in any other way, to
persons from whom monies are collected or to any other person,
but does not include any institution, which carries on as
its principal business,–
(a) agricultural operations; or
(aa) industrial activity; or]
(b) the purchase or sale of any goods (other than securities)
or the providing of any services; or
(c) the purchase, construction or sale of immovable property,
so however, that no portion of the income of the institution
is derived from the financing of purchases, constructions
or sales of immovable property by other persons;
Explanation.– For the purposes of this clause, ‘‘industrial
activity’’ means any activity specified in sub-clauses
(i) to (xviii) of clause (c) of section 2 of the Industrial
Development Bank of India Act, 1964;
(d) ‘‘firm’’ means a firm as defined
in the Indian Partnership Act, 1932;
(e) ‘‘non-banking institution’’ means
a company, corporation or cooperative society.
(f) ‘‘non-banking financial company’’
means–
(i) a financial institution which is a company;
(ii) a non-banking institution which is a company and which
has as its principal business the receiving of deposits, under
any scheme or arrangement or in any other manner, or lending
in any manner;
(iii) such other non-banking institution or class of such
institutions, as the Bank may, with the previous approval
of the Central Government and by notification in the Official
Gazette, specify;
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