Account Aggregator Master Direction updated on Oct 5, 2021
The Reserve Bank of India released the updated version of Master Direction- Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016 on October 5, 2021. The previous version was released on November 22, 2019.
Notable changes in the current version are,
viii (a). “Dividend Payout Ratio” means the ratio between the amount of the dividend payable in a year and the net profit as per the audited financial statements for the financial year for which the dividend is proposed. Proposed dividend shall include both dividend on equity shares and compulsory convertible preference shares eligible for inclusion in Tier I Capital/ owned funds. In case the net profit for the relevant period includes any exceptional and/or extra-ordinary profits/ income or the financial statements are qualified (including ’emphasis of matter’) by the statutory auditor that indicates an overstatement of net profit, the same shall be reduced from net profits while determining the Dividend Payout Ratio.
4.3 Investment from FATF non-compliant jurisdictions
4.3.1 Investments in NBFC-AA from FATF non-compliant jurisdictions shall not be treated at par with that from the compliant jurisdictions. New investors from or through non-compliant FATF jurisdictions, whether in existing NBFC-AA or in companies seeking Certification of Registration (COR), should not be allowed to directly or indirectly acquire ‘significant influence’ in the investee, as defined in the applicable accounting standards. In other words, fresh investors (directly or indirectly) from such jurisdictions in aggregate should be less than the threshold of 20 per cent of the voting power (including potential3 voting power) of the NBFC-AA.
4.3.2 Investors in existing NBFC-AAs holding their investments prior to the classification of the source or intermediate jurisdiction/s as FATF non-compliant, may continue with the investments or bring in additional investments as per extant regulations so as to support continuity of business in India.