News

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

Banking & Finance | Dated: 09 Apr 2025

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.

🎯 Key Highlights:

- 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.

💡 Other Important Facts:

(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.

📚 Test Your Knowledge:

Which company has recently received a Certificate of Registration (CoR) from RBI to operate as an NBFC-ICC?

Correct Answer: Piramal Finance Limited

🚀 Quick Recap:

About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai