RBI approves Piramal Enterprises’ establishment of NBFC

The Reserve Bank of India (RBI) has given the organisation permission to begin conducting business as an NBFC to Piramal Enterprises. The licence is required to start an NBFC that does not accept public deposits. RBI has granted the company a certificate of registration allowing it to start operating as a non-banking financial institution without taking deposits from the general public.

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KEY POINTS:

• The company gained agreement from the shareholders to demerge its pharmaceuticals division and streamline its corporate structure, the RBI granted its approval.
• The company paid Rs 34,250 crore to buy Dewan Housing Finance (DHFL).
• The company had previously stated that the acquisition will increase the retail loan book by up to five times, hence diversifying Piramal Enterprises’ loan book towards retail financing.

Important Takeaways for All Competitive Exams:

• RBI Governor: Shaktikanta Das
• Piramal Enterprises Founder: Ajay Piramal
• Piramal Enterprises CEO: Peter DeYoung