Section 45IA(4) in The Reserve Bank of India Act, 1934
(4)The Bank, for the purpose of considering the application for registration, may require to be satisfied by an inspection of the books of the non-banking financial company or otherwise that the following conditions are fulfilled:—(a)that the non-banking financial company is or shall be in a position to pay its present or future depositors in full as and when their claims accrue;(b)that the affairs of the non-banking financial company are not being or are not likely to be conducted in a manner detrimental to the interest of its present or future depositors;(c)that the general character of the management or the proposed management of the non-banking financial company shall not be prejudicial to the public interest or the interests of its depositors;(d)that the non-banking financial company has adequate capital structure and earning prospects;(e)that the public interest shall be served by the grant of certificate of registration to the non-banking financial company to commence or to carry on the business of India;(f)that the grant of certificate of registration shall not be prejudicial to the operation and consolidation of the financial sector consistent with monetary stability and economic growth considering such other relevant factors which the Bank may, by notification in the Official Gazette, specify; and(g)any other condition, fulfilment of which in the opinion of the Bank, shall be necessary to ensure that the commencement of or carrying on of the business in India by a non-banking financial company shall not be prejudicial to the public interest or in the interests of the depositors.
