45JA. Power of Bank
to determine policy and issue directions.- (1) If
the Bank is satisfied that, in the public interest or to regulate
the financial system of the country to its advantage or to
prevent the affairs of any non-banking financial company being
conducted in a manner detrimental to the interest of the depositors
or in a manner prejudicial to the interest of the non-banking
financial company, it is necessary or expedient so to do,
it may determine the policy and give directions to all or
any of the non-banking financial companies relating to income
recognition, accounting standards, making of proper provision
for bad and doubtful debts, capital adequacy based on risk
weights for assets and credit conversion factors for off-balance
sheet items and also relating to deployment of funds by a
non-banking financial company or a class of non-banking financial
companies or non-banking financial companies generally, as
the case may be, and such non-banking financial companies
shall be bound to follow the policy so determined and the
directions so issued.
(2) Without prejudice to the generality of the powers vested
under subsection (1), the Bank may give directions to non-banking
financial companies generally or to a class of non-banking
financial companies or to any non-banking financial company
in particular as to–,
(a) the purpose for which advances or other fund based or
non-fund based accommodation may not be made; and
(b) the maximum amount of advances or other financial accommodation
or investment in shares and other securities which, having
regard to the paid-up capital, reserves and deposits of the
non-banking financial company and other relevant considerations,
may be made by that non-banking financial company to any person
or a company or to a group of companies.
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