What Is a Type II Non-Deposit NBFC? Airtel Money’s New Role Decoded

Airtel Money has received Certificate of Registration (CoR) from the Reserve Bank of India (RBI). The approval allows the Bharti Airtel subsidiary to operate as a Type II, non-deposit accepting Non-Banking Financial Company (NBFC). This clearance marks Airtel Money’s formal entry into a wider segment of regulated financial services activities. Alongside the approval, Bharti Airtel issued the RBI-mandated disclaimer, clarifying the regulator’s position on financial soundness and liability responsibilities.

About RBI Approval Type II Non-Deposit NBFC for Airtel Money

• Airtel Money granted NBFC registration by RBI
• Categorised as Type II Non-Deposit NBFC
• Authorized under Non-Banking Financial Company framework
• This enables Airtel Money to legally expand its financial products and services within RBI regulations.

Understanding Type II Non-Deposit NBFC

A Type II NBFC (Non-Deposit Accepting),

• Cannot accept public deposits
• Can engage in lending & financial activities
• Operates under RBI supervision & compliance norms
• \Focus remains on credit, payments, and financial solutions, not deposit-taking.

RBI’s Mandatory Disclaimer – Key Clarification

As required by RBI, Bharti Airtel stated,

• RBI does not guarantee financial soundness
• RBI does not validate company statements or opinions
• RBI not responsible for liabilities or repayments

This is a standard regulatory disclaimer applied to NBFC registrations.

Telecom & Fintech Convergence

• Airtel Money bridges telecom & financial services
• Supports India’s digital payments & fintech growth
• Reinforces trend of tech-led NBFC models
• Reflects deeper integration of mobile platforms and financial solutions.

Question

Q. Airtel Money has been registered by RBI under which category?

A) Deposit-taking NBFC
B) Type I NBFC
C) Type II Non-Deposit NBFC
D) Small Finance Bank