Can a pvt. ltd not being registered as a financial institution shall lies interest or give finance facility

Amit (Querist) 19 July 2008 This query is : Resolved
Dear All,
A private limited, mainly in sales of hardware and software products. The company whether not being registered as a financial institution grants credit facility by way of deffered payment in monthly installment basis, which includes interest on the balance consideration amount. Whether the company can do such kind of thinks? and What legal consequences may be arised thereof?

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Srinivas.B.S.S.T (Expert) 19 July 2008
No company can deal with financing or re-financing or deposit collection without the permission of RBI. Criminal action will be initiated against the violators.

arunprakaash.m. (Expert) 21 July 2008
No company can function as an NON BANKING FINANCIAL COMPANY without the permission of RBI under section 45 of Babking regulation act 1949.

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