When looking to start up Lending or Leasing in India, what regulations would need to be taken into account? Non-bank vs. Bank regulations and in-state vs. cross border? Is the regulatory environment restrictive? Are funds required to come from in state or can cross border funds be used?

Thank you for your insights.

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Its nice to read the questions concerning Lending/Leasing Regulatory Environment in India as Start-Up.

I wish to state that financial system in any country has certain regulations needed for compliance. Such regulations, as in India, are framed by The Regulator viz. Reserve Bank of India. Similarly, every country has a Regulator body viz. mostly Central Bank of the concerned country. The purpose of regulatory guidelines by Regulators is to bring in place the transparency & discipline in financial system within the set of regulatory guidelines.

In other words, in the presence of regulatory guidelines, the necessary permissions for compliance may be existing due to their own regulatory importance. 

As far as I know, any foreign entity that needs to start any business in India has to comply norms relating to Incorporated Entity or Unincorporated Entity which have their own norms for compliance. When it is so, the investment is subject to Foreign Exchange Maintenance regulations as applicable in India. 

Besides, there are routes of investment decided viz. Automatic Route of Investment or Government Route of Investment. You need to find out which route suits you after reading the meaning of above routes of investment. There are certain prohibited categories of sectors which are not covered for investment in India which you must take care.

The subject matter has detailed explanations. My suggestions to you is to visit the following link if possible (or you may explore other useful links on internet also) : 

https://www.rbi.org.in/scripts/FAQView.aspx?Id=26

Apart from the above, you may also refer the following link to find out if it is useful for you:

http://www.makeinindia.com/policies

You will find  that many FAQs on Foreign Investments in India are beautifully answered which must have pondered over the minds of many investors like you and answered by experts to make a best guide & experience for newcomers. 

You can choose the questions/answers best suited for your purpose. 'Contact us' link is also available in above referred site in case you need any further guidance on other issues. In 'Contact us', you may be required to provide your full details before raising any query on which you need clarification.

Since its not possible to write & explain in detail, my suggestion is that you must get the before hand clarifications through the concerned authorities (after referring FAQs). Authorities are kind enough to guide & respond to the queries of future investors like you.

Once your doubts are cleared, you may make a suitable application to the concerned department at Regulator or as guided so as to have fruitful outcome. 

Hope you will find the above information useful for your Start-Up in Lending or Leasing in India. 

Ajay Kumar Jhingan

Email:ajay3105@yahoo.co.in

Thank you Ajay, I appreciate your input and knowledge on the subject.

Ajay Kumar Jhingan said:

Its nice to read the questions concerning Lending/Leasing Regulatory Environment in India as Start-Up.

I wish to state that financial system in any country has certain regulations needed for compliance. Such regulations, as in India, are framed by The Regulator viz. Reserve Bank of India. Similarly, every country has a Regulator body viz. mostly Central Bank of the concerned country. The purpose of regulatory guidelines by Regulators is to bring in place the transparency & discipline in financial system within the set of regulatory guidelines.

In other words, in the presence of regulatory guidelines, the necessary permissions for compliance may be existing due to their own regulatory importance. 

As far as I know, any foreign entity that needs to start any business in India has to comply norms relating to Incorporated Entity or Unincorporated Entity which have their own norms for compliance. When it is so, the investment is subject to Foreign Exchange Maintenance regulations as applicable in India. 

Besides, there are routes of investment decided viz. Automatic Route of Investment or Government Route of Investment. You need to find out which route suits you after reading the meaning of above routes of investment. There are certain prohibited categories of sectors which are not covered for investment in India which you must take care.

The subject matter has detailed explanations. My suggestions to you is to visit the following link if possible (or you may explore other useful links on internet also) : 

https://www.rbi.org.in/scripts/FAQView.aspx?Id=26

Apart from the above, you may also refer the following link to find out if it is useful for you:

http://www.makeinindia.com/policies

You will find  that many FAQs on Foreign Investments in India are beautifully answered which must have pondered over the minds of many investors like you and answered by experts to make a best guide & experience for newcomers. 

You can choose the questions/answers best suited for your purpose. 'Contact us' link is also available in above referred site in case you need any further guidance on other issues. In 'Contact us', you may be required to provide your full details before raising any query on which you need clarification.

Since its not possible to write & explain in detail, my suggestion is that you must get the before hand clarifications through the concerned authorities (after referring FAQs). Authorities are kind enough to guide & respond to the queries of future investors like you.

Once your doubts are cleared, you may make a suitable application to the concerned department at Regulator or as guided so as to have fruitful outcome. 

Hope you will find the above information useful for your Start-Up in Lending or Leasing in India. 

Ajay Kumar Jhingan

Email:ajay3105@yahoo.co.in

Thank you Ajay, I appreciate your input and knowledge on the subject.

Ajay Kumar Jhingan said:

Its nice to read the questions concerning Lending/Leasing Regulatory Environment in India as Start-Up.

I wish to state that financial system in any country has certain regulations needed for compliance. Such regulations, as in India, are framed by The Regulator viz. Reserve Bank of India. Similarly, every country has a Regulator body viz. mostly Central Bank of the concerned country. The purpose of regulatory guidelines by Regulators is to bring in place the transparency & discipline in financial system within the set of regulatory guidelines.

In other words, in the presence of regulatory guidelines, the necessary permissions for compliance may be existing due to their own regulatory importance. 

As far as I know, any foreign entity that needs to start any business in India has to comply norms relating to Incorporated Entity or Unincorporated Entity which have their own norms for compliance. When it is so, the investment is subject to Foreign Exchange Maintenance regulations as applicable in India. 

Besides, there are routes of investment decided viz. Automatic Route of Investment or Government Route of Investment. You need to find out which route suits you after reading the meaning of above routes of investment. There are certain prohibited categories of sectors which are not covered for investment in India which you must take care.

The subject matter has detailed explanations. My suggestions to you is to visit the following link if possible (or you may explore other useful links on internet also) : 

https://www.rbi.org.in/scripts/FAQView.aspx?Id=26

Apart from the above, you may also refer the following link to find out if it is useful for you:

http://www.makeinindia.com/policies

You will find  that many FAQs on Foreign Investments in India are beautifully answered which must have pondered over the minds of many investors like you and answered by experts to make a best guide & experience for newcomers. 

You can choose the questions/answers best suited for your purpose. 'Contact us' link is also available in above referred site in case you need any further guidance on other issues. In 'Contact us', you may be required to provide your full details before raising any query on which you need clarification.

Since its not possible to write & explain in detail, my suggestion is that you must get the before hand clarifications through the concerned authorities (after referring FAQs). Authorities are kind enough to guide & respond to the queries of future investors like you.

Once your doubts are cleared, you may make a suitable application to the concerned department at Regulator or as guided so as to have fruitful outcome. 

Hope you will find the above information useful for your Start-Up in Lending or Leasing in India. 

Ajay Kumar Jhingan

Email:ajay3105@yahoo.co.in

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