RBI adopted new requirements to tackle money laundering and terrorist funding whereby new investors from or across the Non-Compliant Financial Action Task Force (FATF) Jurisdictions, whether in current NBFCs or firms pursuing Certification of Registration (COR), should not be able to gain ‘Significant Influence’ directly or indirectly in the Investee. Therefore, fresh investors should hold less than the threshold of 20% of the voting power in theNBFC’s.

However, current investors in NBFC’swho are holding their investments prior to the declaration of the source or intermediate jurisdiction as non-compliant FATFs will be allowed to continue investments or to make additional investments in compliance with existing legislation to support the continuation of business in India.

Detailed Notification can be accessed here -