RBI Grants Certificate of Registration to Piramal Finance to Function as NBFC-ICC.

Banking & Finance

In April 2025, the Reserve Bank of India (RBI) granted a Certificate of Registration (CoR) to Piramal Finance Limited (PFL)—a wholly-owned subsidiary of Piramal Enterprises Limited (PEL) based in Mumbai, Maharashtra—to operate as a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC) without accepting public deposits.


      - The Certificate of Registration (CoR) was issued under Section 45 IA of the RBI Act, 1934.

      - With this approval, PFL will transition from its current status as a Housing Finance Company (HFC) and surrender its HFC registration to focus on broader NBFC-ICC operations.

      - In March 2025, Piramal Enterprises Limited (PEL) infused ₹600 crore into PFL through a rights issue to support its business operations and corporate expansion.

Main Point :-   (i) PEL has also approved the issuance of secured, rated, listed, redeemable non-convertible debentures (NCDs) on a private placement basis.

      (ii) The issue includes a base size of ₹100 crore, with a green shoe option of ₹200 crore, aggregating to ₹300 crore.

(iii) These NCDs carry an annual coupon rate of 9.30%, and are redeemable by April 9, 2029. In case of payment defaults, a 1% penalty interest will be applicable. The minimum Net Owned Fund (NOF) required to operate as an NBFC-ICC is ₹5 crore.
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Governor : Sanjay Malhotra
Headquarter : Mumbai
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