Residuary Non-Banking Company is a class of NBFCs whose ‘principal business’ is to receive deposits, under any scheme or arrangement or in any other manner. Functioning of these companies is different from that of NBFCs in terms of method of mobilization of deposits and requirement of deployment of depositors’ funds. These companies, however, have now been directed by the Reserve Bank not to accept any deposits and to wind up their businesses as RNBCs.
