RBI forms new NBFCs’ category by merging 3 category

• The Reserve Bank of India on February 22, 2019 merged the three categories of NBFCs i.e
  • Asset Finance Companies (AFC),
  • Loan Companies (LCs) and
  • Investment Companies (ICs)
    into a new category called NBFC – Investment and Credit Company (NBFC-ICC).

• The aim is to ease operational flexibility of these institutions. The same was announced in the  Sixth Bi-monthly Monetary Policy Statement for 2018-19 dated February 07, 2019 and was brought into effect on February 22, 2019.