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Below is a long list of various banks that you can choose from- best of luck in choosing, and thanks for your questionWhat bank has the best signing bonus?The 6 Best Bank Bonuses of 2019HSBC Checking: Up to $750. Courtesy of HSBC. ...Citi: Up to $600. Courtesy of Citi. ...TD Bank: Up to $300. Courtesy of TD Bank. ...PNC: Up to $300. Courtesy of PNC. ...Capital One Bank: $200. Courtesy of Capital One. ...Discover Bank: Up to $200. Courtesy of Discover Bank.34 Best New Bank Account Promotions & Offers – August 2019It’s possible to make $100s just by opening up a bank account. But sorting through the best offers can be tricky.At Money Crashers, we comb through hundreds of deals every month to find you the most lucrative sign-up bonuses – some worth up to $1,000. We also rank the best high-yield checking accounts, cashback credit cards, and more.Don’t want to miss out? Here are the best bank promotions for the month of August.Top Bank Account Promotions (August 2019)1. TD Bank Beyond Checking℠ – $300 Cash BonusApply online for a new TD Bank Beyond Checking account and you’ll get a $300 cash bonus once you receive direct deposits of more than $2,500 within 60 days. To qualify for this offer, you must be a U.S. resident and apply for the offer online. The Beyond checking account typically includes a $25 monthly maintenance fee, but it’s waived with monthly direct deposits of $5,000 or more, a minimum daily balance of $2,500, or a combined balance of $25,000 across your eligible TD accounts.This offer is available to residents of the following states: CT, DE, DC, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA.Apply Now2. TD Bank Convenience Checking℠ – $200 Cash BonusAs an alternative to the TD Bank Beyond Checking offer above, you can apply online for a new TD Bank Convenience CheckingSMaccount, which has a much lower minimum balance requirement. You’ll get a $200 cash bonus once you receive direct deposits of more than $500 within 60 days.To qualify for this offer, you must be a U.S. resident and apply for the offer online. The Convenience Checking account typically includes a $15 monthly maintenance fee, but it’s waived if you keep a low minimum daily balance of at least $100. Students and young adults ages 17 through 23 qualify for additional perks, such as no monthly maintenance fee and no minimum balance requirements.This offer is available to residents of the following states: CT, DE, DC, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA.Apply Now3. Simple Protected Goals Account – Up to $500 Bonus With Qualifying ActivitiesEarn up to $500 when you open new Simple.com Protected Goals Accounts (Individual and Shared) by August 31, 2019, with qualifying activities – that’s a $250 bonus on each new account.Here’s how to earn the $250 bonus for each new Protected Goals Account ($250 for Individual and $250 for Shared). First, open a new Protected Goals Account by 4:59 pm PT on 8/31/19. Deposit $10,000 or more into the new Protected Goals Account by 4:59 pm PT on 9/16/19 (the deposit must post by that time). Then, maintain a balance of at least $10,000 in the new Protected Goals Account through 4:59 pm PT on 12/31/19.If you meet the bonus requirements by the specified deadlines, you’ll receive a $250 bonus per account by 4:59 pm PT on 1/14/20. To receive the bonus, each account must be open and in good standing at the time of the bonus credit. You’re limited to one $250 bonus per Protected Goals Account.Apply Now4. Chase SapphireSMChecking – $750 BonusOpen a new Chase SapphireSMChecking account with qualifying activities to earn a $750 cash bonus.Here’s how. First, open or upgrade to a Chase Sapphire Checking account at your local Chase branch or online (for new Chase checking customers only). Then, within 45 calendar days of opening your account, transfer a total of $75,000 or more in qualifying new money or securities to a combination of eligible checking, savings and/or investment accounts, and maintain that balance for at least 90 days. Within 10 days of completing these qualifying activities, Chase will deposit the bonus into your Chase Sapphire Checking account.This offer is not available to exist Chase Sapphire Banking or Chase Private Client customers. The Chase Sapphire Checking account’s $25 monthly service fee is waived when you maintain a $75,000 minimum daily balance across any combination of your Chase Sapphire Checking account and linked qualifying Chase checking, savings, and other balances.Apply Now5. Chase Premier Plus CheckingSM– $300 BonusTo qualify for this bonus, open a new Chase Premier Plus CheckingSMaccount and have a direct deposit (electronic transfer for a paycheck, pension or government benefits) made to the account within 60 days. (You can either apply online using the link above or enter your email on the linked page to receive the coupon to take to your local Chase branch.) Once these steps are taken, you should receive the bonus in your account within 10 business days.Keep in mind that the Premier Plus account has a monthly service fee of $25. However, the fee is waived if you keep an average daily balance of at least $15,000 between all of your Chase accounts (checking, savings, and other balances) or you set up automatic payments to your qualifying Chase mortgage. There’s no minimum required an opening deposit. All balances yield 0.01% effective as of 6/14/19. Interest rates are variable and subject to change.Chase has ATMs and branches in the following states: AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, KY, LA, MA, MI, NV, NJ, NY, OH, OK, OR, TX, UT, WA, WV, WI. This offer is available nationwide, except to residents of AK, HI, and PR.Apply Now6. Chase Total Checking® – $200 BonusThere is a separate bonus offer of $200 for Chase Total Checking®, which is a step down from the Chase Premier Plus Checking account mentioned above. Open a new Chase Total Checking® account and make a qualifying direct deposit within 60 days. You’ll then receive a $200 bonus within 10 business days.There is a $12 monthly fee but it is waived if you meet at least one of the following criteria in each monthly statement period:Execute direct deposits totaling $500 or more made to the accountMaintain a $1,500 minimum daily balanceMaintain an average daily balance of $5,000 or more in qualifying linked deposits or investmentsPay at least $25 or more in qualifying checking-related services or feesTo receive this bonus, you can either apply online using the link above or enter your email here and take the coupon to a local Chase branch. Chase has ATMs and branches in the following states: AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, KY, LA, MA, MI, NV, NJ, NY, OH, OK, OR, TX, UT, WA, WV, WI. This offer is available online nationwide, except to residents of AK, HI, and PR.Apply Now7. Chase SavingsSM– $150 BonusYou can earn an additional bonus of $150 with a Chase savings account. Open a new Chase SavingsSMaccount, deposit at least $10,000 within 20 business days and maintain a $10,000 balance or more for 90 days from when the deposit was made. You’ll then receive a $150 bonus within 10 business days.You can avoid the $5 monthly maintenance fee on this account by doing one of the following each monthly statement period:Maintaining a minimum daily balance of at least $300Executing at least one repeating automatic transfer of $25 or more from your personal Chase checking account or Chase Liquid® CardHaving at least one account owner who is an individual younger than 18Linking the account to an eligible Chase Premier Plus Checking, Chase Sapphire Checking, or Chase Private Client Checking accountTo receive this bonus, you can either apply online using the link above or enter your email here and take the coupon to a local Chase branch. Chase has ATMs and branches in the following states: AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, KY, LA, MA, MI, NV, NJ, NY, OH, OK, OR, TX, UT, WA, WV, WI. This offer is available online nationwide, except to residents of AK, HI, and PR.Apply Now8. Chase Total Business Checking – $200 BonusIf you’re a business owner looking to set up a new account, Chase has you covered as well. Open a new Chase Total Business Checking account with a deposit of at least $1,000 within 20 business days. Then, maintain that balance for 60 days and complete at least 5 qualifying transactions within the same time period (debit card purchases, checks paid, and qualifying deposits). You’ll then receive the $200 bonus within 10 business days.To receive this bonus, you’ll need to enter your email here and take the coupon to a local Chase branch. Chase has ATMs and branches in the following states: AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, KY, LA, MA, MI, NV, NJ, NY, OH, OK, OR, TX, UT, WA, WV, WI. This offer expires on October 17, 2019.Apply Now9. Chase College Checking – $100 BonusThere’s a separate checking account offer just for college students. Open a new Chase College Checking account within an initial deposit of at least $25, enroll in paperless statements, and then complete at least 10 qualifying transactions within 60 days of opening the account. You’ll then be eligible to earn the $100 bonus within 10 business days.To receive this bonus, you’ll need to enter your email here and take the coupon to a local Chase branch. Chase has ATMs and branches in the following states: AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, KY, LA, MA, MI, NV, NJ, NY, OH, OK, OR, TX, UT, WA, WV, WI. This offer expires on October 18, 2019.Apply Now10. Capital One 360 – Up to $150 Cash BonusThis offer is made up of 3 components, which you can perform separately or as a combination.Open a new Capital One 360 Checking account with at least $250 and make at least 3 debit card purchases or Person2Person payments (can be any combination of the two) within 45 days of account opening. Your $25 bonus will then be deposited into your account on day 50.Open a new Capital One 360 Money Market account. If you deposit $250 to $9,999.99, you’ll get a $25 bonus. If you deposit $10,000 or more, you’ll get a $100 bonus, which will automatically be deposited into your account.Open a new Capital One 360 Saving account with an initial deposit of at least $250. Your $25 bonus will then automatically be deposited into your account.The total cash bonus amount is up to $150, depending on which account you open and how much you deposit for the Money Market account.Apply Now11. Wells Fargo Everyday Checking – $400 Cash BonusOpen a new Wells Fargo Everyday Checking account online or in-branch by November 27, 2019, to qualify for a cash bonus of $400. Here’s how to do it:First, check that the offer is available in your area using the ZIP code finder on the promotions page.Then, open a new Wells Fargo Everyday Checking account online or in-branch and make the minimum required an opening deposit of $25.Next, within 150 days of account opening, receive cumulative direct deposits totaling $3,000 or more each month for three consecutive monthsOnce you meet at least one of these requirements, you’ll receive a $400 cash bonus in your account within 45 days. Your account must remain open to receive the bonus.Note that qualifying direct deposits include salary, pension, Social Security, and other qualifying income. Direct deposits must be electronically deposited via ACH. Your account must have a balance of at least $1 during the entire qualification period.You can avoid the Everyday Checking account’s $10 monthly maintenance fee by doing any of the following:Maintaining a minimum daily balance of $1,500Completing 10 or more debit card transactions per monthExecuting direct deposits totaling $500 or more per monthIf you currently have an open Wells Fargo consumer checking account or have earned any other Wells Fargo checking account bonus within the past 12 months, you’re not eligible for this offer.Apply Now12. PNC Bank – Up to $300 Cash BonusPNC is offering two separate bonus opportunities, worth up to $300 when you open a new PNC Bank Virtual Wallet account:To earn the $200 cash bonus, open a new Virtual Wallet with Performance Spend and arrange total qualifying direct deposits of at least $2,000 to your account. Then, make at least 10 debit card purchases with the debit card tied to your account. You’ll receive the $200 bonus in your account within 90 days of meeting all conditions.To earn the $300 cash bonus, open a new Virtual Wallet with Performance Select and arrange total qualifying direct deposits of at least $5,000 to your account. Then, complete at least 10 debit card purchases with the debit card linked to your new account. The bonus should be paid within 90 days of meeting the requirements.These cash bonus offers to expire on September 30, 2019.This offer applies to residents of the following states: AL, DC, DE, FL, GA, IL, IN, KY, MD, MI, MO, NC, NJ, NY, OH, PA, SC, VA, WI & WV.Apply Now13. HSBC Premier Checking – $750 Cash BackFor a limited time, you can snag a $750 welcome bonus when you open a new HSBC Premier Checking account and complete certain qualifying activities.To earn the bonus, open your new Premier Checking account by December 31, 2019, and set up recurring monthly third-party direct deposits totaling at least $5,000 to your HSBC Premier checking account(s) per calendar month. You’ll also need to receive recurring third-party direct deposits totaling at least $5,000 per month for 3 consecutive months beginning with your account opening month. Once you complete these qualifying activities, expect to see your $750 bonus in your Premier Checking account within 8 weeks.Moving forward, avoid the $50 monthly maintenance fee by maintaining the same direct deposit size and frequency or maintaining a combined minimum balance of $75,000 across all eligible personal and investment accounts.Apply Now14. Capital One 360 Money Market – $500 Cash BonusWhen you open a new Capital One 360 Money Market account and complete qualifying activities, you’ll earn a $500 cash bonus. While this bonus opportunity was set to expire on July 31, 2019, it remains active for a limited time – through Capital One could choose to alter or discontinue it at any time.To qualify for the bonus, open a Capital One 360 Money Market account using the promo code “SPREE500” and deposit at least $50,000 or more in new money from an external bank within 10 days of account opening. Maintain a minimum daily balance of $50,000 for 90 days. Capital One will deposit your $500 bonus within 60 days after the 90-day mark, provided your account remains open and in good standing.A yield of 2.00% APY applies to accounts with balances of $10,000 or more. Accounts with balances less than $10,000 yield 0.85% APY. This offer is not available to applicants who have or have had a Capital One savings product after January 1, 2016.Apply Now15. Discover Cashback Checking – Up to $360 Annual Cash BackWhen you open a new Cashback Checking account, you can earn as much as $360 each account anniversary year (12 billing cycles beginning with the cycle in which you open your account).Just open and fund the account in any amount, then use your debit card to make everyday purchases. You earn 1% cash back on up to $3,000 in qualifying purchases per month or up to $36,000 in qualifying purchases per year. Cash-like payments, such as ATM withdrawals and P2P payments, do not qualify for cashback.For more details on other account types and offers from Discover Bank, check out our Discover Bank review.Apply Now16. HSBC Advance Checking – $350 Cash BackOpen a new HSBC Advance Checking account and deposit at least $5,000 in new money to earn a $350 welcome bonus.Here’s how to do it. First, open your account by December 31, 2019, and deposit at least $10,000 in outside funds (new money) in combined checking and savings accounts within 30 days of your account opening date. Then, set up at least one recurring monthly direct deposit from a qualifying third-party payee for at least 3 consecutive months while maintaining a daily balance of at least $5,000 in the accounts for 90 calendar days from the deposit date. You’ll receive your bonus within 8 weeks after completing the qualifying activities.Moving forward, you can avoid the $25 monthly maintenance fee by maintaining a $5,000 daily balance and a recurring direct deposit into the account.Apply Now17. Citibank Account Package – Up to $500 Cash BonusWhen you open a new eligible checking and savings account in the Citibank Account Package by September 30, 2019, you could qualify for a cash bonus up to $500. Here’s how to earn the bonus:Within 30 days of opening your account, deposit at least $15,000 in new money (funds not previously held with Citibank or its affiliates) into your account.Maintain a $15,000 minimum balance for at least 60 consecutive calendar days. This qualifies you for a $400 cash bonus, which you’ll receive within 90 days of completing all required activities if you do nothing more.To earn an additional $100 bonus (for a total cash bonus of $500), arrange and complete at least one qualifying direct deposit per month for 2 consecutive months within 60 days of account opening.You’ll receive your cumulative bonus within 90 days of completing all required activities.The $25 monthly maintenance fee is waived when you maintain a minimum daily balance (average) of at least $10,000. This offer is available to new Citibank account holders only.Apply Now18. Citibank Priority Account Package – $600 Cash BonusCitibank has another generous account opening offer for new customers, though it requires a hefty initial deposit.When you open a new eligible checking and savings account in the Citibank Priority Account Package by September 30, 2019, you could qualify for a cash bonus of $600. Here’s how to earn the bonus:Within 30 days of opening your account, deposit at least $50,000 in new money (funds not previously held with Citibank or its affiliates) into your checking and savings accounts (cumulative).Maintain a that cumulative $50,000 minimum balance in your checking and savings accounts for at least 60 consecutive calendar days.You’ll receive the bonus within 90 days of completing all required activities.The $30 monthly maintenance fee is waived when you maintain a minimum daily balance (average) of at least $50,000. This offer is available to new Citibank account holders only.Apply Now19. Marcus by Goldman Sachs – 1% Deposit Bonus (Up to $500)New and existing Marcus by Goldman Sachs accountholders may qualify for a 1% bonus on new money deposits, up to $50,000 in total deposits and $500 total bonus cash. Qualifying deposits must be new money – internal transfers don’t count.To qualify for this bonus, open a Marcus Online Savings Account (if you haven’t already) and manually enroll in the offer on Marcus by Goldman Sachs’ website. Then, during the 10-day enrollment period, deposit at least $1,000 in new money. The total of all deposits made during this period is your Enrollment Account Balance.Following the end of the 10-day enrollment period, maintain your full Enrollment Account Balance for 90 consecutive days (the Maintenance Period). If your account is open and good standing at the end of the Maintenance Period, you’ll receive 1% of the total Enrollment Account Balance (up to $500) within 14 business days.All balances held in the Marcus Online Savings Account yield 2.15% APY. This offer is not available to new or existing Marcus customers currently enrolled in another bonus offer.Apply Now20. SunTrust Bank Advantage Checking – $300 Cash BonusNew customers can take “advantage” of a $300 cash bonus opportunity when they open a new Suntrust Advantage Checking account and complete the qualifying activities.Here’s how to earn the bonus. First, open a new SunTrust Advantage Checking account by September 30, 2019, with a minimum opening deposit of $100, using the offer code “Q319ADVCHKOL.” Then, complete at least $3,000 in cumulative direct deposits each statement cycle for two consecutive statement cycles within the first three full monthly statement cycles. Qualifying direct deposits include wage or salary, pension, Social Security, or other regular monthly income.Once you complete the offer requirements, you’ll receive your $300 bonus within eight weeks.This offer applies to new SunTrust checking customers (defined as customers without existing accounts or accounts closed within the past 180 days) living in states in which SunTrust Bank has a physical presence, including AL, AR, FL, GA, MD, MS, NC, SC, TN, VA, DC & WV. Check SunTrust Bank’s website for availability in your area.Apply Now21. Bank of America – Up to $300 BonusBank of America has two great account opening promotions that could net you up to $300 in bonus cash. Here’s how they work$300 BonusTo qualify for $300 in bonus cash, open a Bank of America AdvantageSafeBalance Banking, Advantage Plus Banking, or Advantage Relationship Banking account by August 31, 2019, using the link above. Then, deposit at least $4,000 in new money within 90 days. Once you complete this qualifying activity, you’ll receive $300 in bonus cash in your account within 60 days.This offer is only available to new Bank of America checking customers who have not had a Bank of America personal checking account within the past 6 months. There is a $25 minimum deposit to open a SafeBalance Banking account and a $100 minimum deposit to open the other two accounts.Moving forward, here’s how to avoid monthly maintenance fees on these accounts:Avoid the $4.95 monthly fee on Advantage SafeBalance Banking as a student under age 24 or by meeting Bank of America’s Preferred Rewards enrollment requirements.Avoid the $12 monthly fee on Advantage Plus Banking in any statement cycle during which you receive at least one direct deposit of $250 or more or maintain a $1,500 minimum daily balance.Avoid the $25 monthly fee on Advantage Relationship Banking in any statement cycling during which you maintain a $10,000 minimum combined balance across eligible Bank of America and Merrill Lynch accounts.Apply Now$100 BonusIf you can’t swing $4,000 in new money on short notice, opt for the $100 bonus instead. It’s good for longer and requires no non-payroll new money deposit.To qualify, open a Bank of America AdvantageSafeBalance Banking, Advantage Plus Banking, or Advantage Relationship Banking account by December 31, 2019, and receive at least 2 qualifying direct deposits of $250 or more within the first 90 days to earn a $100 cash bonus. You must use the link above to open your account.Once you complete the qualifying direct deposits, you’ll receive the bonus within 90 days. Like the $300 bonus, this offer is only available to new Bank of America checking customers who have not had a Bank of America personal checking account within the past 6 months. Minimum deposit requirements, maintenance fees, and maintenance fee waivers all apply.Apply Now22. BMO Harris – Up to $250 Cash BonusIf you’re a Bank At Work or Group Banking Services customer at BMO Harris, you can earn as much as $250. When you open a new personal checking account and meet the direct deposit requirements, you’ll receive $100. You get an additional $50 by opening a new Statement Savings Account with at least $1,000 of new money. Another $50 comes your way when open a new BMO Harris Health Savings Account. And you can add $50 by signing up for eStatements.You should receive your bonuses between 90 and 120 days of either account opening or meeting the requirements.Apply Now23. Elements Financial – $200 Cash BonusOpen a new Elements Financial High-Interest Checking account to qualify for a $200 cash bonus. Just enter promo code CHECK200 on your application, set up a recurring monthly direct deposit of $500 or more within 60 days of account opening, and keep your account open for at least 6 months. Existing Elements Financial checking and Health Savings Account customers are not eligible for this promotion. This offer is advertised for Indiana state government employees in their families, but non-employees may qualify as well.In addition to this promotion, you’ll also get one of the best checking yields around: 2.00% APY on balances up to $20,000 in any statement cycle during which you maintain a $100 minimum daily balance and make 15 qualifying transactions.Apply Now24. Citibank Basic Banking Package – $200 Cash BonusCitibank’s third new account promotion is it's most modest. When you open a new eligible checking account in the Basic Banking Package by September 30, 2019, you could qualify for a $200 cash bonus. Here’s how:Within 30 days of opening your account, deposit at least $5,000 in new money into your account.Maintain a $5,000 minimum balance for at least 60 consecutive calendar days.You’ll receive the $200 bonus within 90 days of completing all required activities.The $12 monthly maintenance fee is waived when you either:Receive at least one qualifying direct deposit per statement period and make at least one qualifying bill payment per statement period, orMaintain at least $1,500 in combined average monthly balances in eligible linked accounts.This offer is available to new Citibank account holders only.Apply Now25. BB&T Bright Banking Checking – $200 Cash BonusBB&T has another account opening bonus that, though less generous, is far easier to attain. Open a new BB&T Bright Banking® checking account by August 8, 2019, and complete one of the following qualifying activities within 75 days of your account opening date.Enroll in direct deposit and receive at least two direct deposits of $100 or moreActivate U by BB&T® bill pay and use it to initiate three online payments of at least $25 eachYou should receive your bonus within four weeks of completing these qualifying activities. You can avoid the $12 monthly maintenance fee in any statement period when you do one of the following:Receive at least one direct deposit of $500 or greaterMaintain an average daily balance of at least $1,500This offer is not available in PA or NJ.Apply Now26. Xceed Financial Credit Union – Up to $200 Referral BonusWhen you refer an eligible new customer to Xceed Financial Credit Union, you and the referred customer may be eligible to receive up to $200 each.New Member EligibilityAlthough Xceed Financial Credit Union’s branch coverage is limited to a handful of states, including New York and California, it’s easy for new members to join. You’re eligible to join if:You belong to any of Xceed’s nonprofit partner organizations, including Heal the Bay and Buffalo ZooYou currently work for or retired from work with any of Xceed’s dozens of for-profit partnersYou live in one of the communities directly served by Xceed$100 or $200 Bonus for Referring MembersTo qualify for the $100 referring member bonus, use the official bankingworthsharing.com referral website to submit your referral.If the referred customer opens a new Xceed Signature Checking account by December 31, 2019, and completes the qualification requirements described below, you’ll receive your $100 referring member bonus within 30 days after the referred member’s account has been open and in good standing for at least 90 days. If you meet the following requirements, you’ll receive an additional $100 bonus, for a total referring member bonus of $200:Have an active Xceed Visa® debit cardSign up for online statementsSign up for overdraft protectionReceive recurring direct ACH payroll deposits totaling at least $500 per month in an Xceed Signature checking account$200 Bonus for Referred MembersNew referred members qualify for a $200 bonus when they complete the following qualifying steps:Open a new Xceed Visa® Platinum debit cardSign up for online statementsSign up for overdraft protectionReceive at least two recurring direct ACH payroll deposits totaling at least $500 per month their new account within 90 days of account openingMaintain their new account in good standing for at least 90 daysAfter taking all required qualifying steps, the newly-referred member receives the $200 bonus within 30 days. There’s no limit to the number of referrals you can make or the total number of referred customers who can sign up using your referral.Apply Now27. Discover Savings – Up to $200 BonusDiscover Bank has two distinct offers for new savings account customers.$200 BonusThis is an attractive cash bonus offer for customers with funds sufficient to meet the hefty opening deposit requirement. To qualify, use the promo code “OBE819” to open your first Discover online savings account by September 9, 2019. Then, deposit at least $25,000 in new money by September 23, 2019. You’ll receive the $200 bonus by October 7, 2019.This offer is not available to anyone who’s previously had a Discover savings account. Your account must be open on the date you receive the bonus (at least through October 7, 2019).Apply Now$150 BonusThis savings offer is slightly easier to attain. Use the promo code “OBE819” to open your first Discover online savings account by September 9, 2019. Then, deposit at least $15,000 in new money by September 23, 2019. You’ll receive the $150 bonus by September 2, 2019.This offer can’t be combined with the $200 bonus offer and isn’t available to previous Discover savings account customers. Your account must be open through October 7, 2019, to receive the bonus.Apply Now28. Discover Cashback Debit – Cashback Match Up to $30 Per MonthDiscover Bank has a separate spending account promotion that’s definitely worth investigating. When you open your first Discover Cashback Debit account and spend up to $3,000 per month, Discover will match cash back earned on that spending through December 31, 2019. At a rate of 1% cashback, that’s a match of up to $30 per month, or $150 total if you open in August.You’ll receive all cash back earned during the promotional period by March 5, 2020. Once the match promotion ends, you’ll continue to earn 1% cash back on up to $3,000 spent each month, for a monthly cashback opportunity of up to $30.Apply Now29. Unify Financial Credit Union – Up to $150 BonusOpen a new checking account with Unify Financial Credit Union (excluding the Right Start Checking and Right Start Debit accounts) and complete the requirements to earn a cash bonus of up to $150. Here’s how:To earn a $50 cash bonus, simply open a qualifying new account with the minimum opening deposit and keep it open for at least 30 days. You’ll receive the bonus during your second statement cycle.Receive a further $50 cash bonus by establishing a recurring direct deposit of at least $500 per month within 60 days of account opening. You’ll receive the bonus during the following statement cycle.Receive the final $50 cash bonus by earning a $1 bonus for each Unify debit card transaction greater than $5 within 60 days of account opening (maximum 50 eligible transactions). You’ll receive the bonus in the following statement cycle.This offer expires on December 31, 2019.Both accounts require a $25 minimum opening deposit, and applicants must be Unify Financial Credit Union members. Membership requirements vary by location, by any U.S. individual can become a Unity member when they join the Surfrider Foundation at no charge.Apply Now30. Regions Bank – Up to $100 Cash Bonus Each YearOpen a new checking account at Regions Bank, either online or at a branch. Then open a Regions LifeGreen Savings Account with an opening deposit of $50 or more. Then, set up a recurring monthly transfer of $10 or more from your Regions checking account to your LifeGreen Savings Account and complete at least 12 monthly transfers. Every year, you’ll receive a 1% savings bonus on your account anniversary date, based on your account’s average monthly balance for the preceding 12 months, up to the max annual savings bonus of $100. Your bonus should be deposited into your account on the business day following your anniversary date.Apply Now31. Charles Schwab – $100 Cash Referral BonusOpen a new qualifying Charles Schwab account with a qualifying referral from an existing Schwab client to earn a $100 bonus.To qualify, simply ask a friend or family member with a Schwab account to send you their unique referral code. Then, use the code to open a new Schwab account with no minimum deposit. You should receive your $100 bonus within 30 days. Monthly fees may apply.Apply Now32. BBVA Money Market Account – $100 BonusOpen a new BBVA Money Market account with a $25 minimum opening deposit and bring your total account balance to at least $10,000 by August 31, 2019. If your account balance is at least $10,000 on November 31, 2019, you’ll receive a $100 bonus within 90 days of completing the requirement.This bonus isn’t available to BBVA customers who’ve earned a banking bonus within the past 12 months. To avoid the $15 monthly service charge, you must either maintain a minimum balance of $10,000 or complete a monthly recurring direct deposit of $25 or more from a BBVA checking account into your BBVA Money Market account. This offer may not be available to customers in CA, TX, FL, AZ, AL, HI, and AK.Apply Now33. Citizens Bank – $1,000 Bonus for College SavingsCitizens Bank is currently offering a $1,000 bonus for those who sign up for a CollegeSaver savings account, an easy, manageable savings plan that will help you meet your college savings needs. It is an interest-bearing account, and if you open it before your child’s 12th birthday and save the monthly minimum amount every year, you’ll receive a $1,000 bonus when your child turns 18. Opening an account before your child turns 12 will only increase the savings.Apply Now34. BankDirect – AAdvantage MilesOpen a BankDirect Mileage Checking Account and earn American Airlines AAdvantage miles. You’ll receive 1,000 miles just for opening an account, 10,000 miles for initiating direct deposit, 5,000 miles for using BankDirect’s bill pay service for 1 year, 5,000 miles when you use your BankDirect Visa CheckCard (debit card) to make at least 12 transactions totaling $500 or more each month for 6 consecutive statement cycles, and 1,000 miles for referring a friend.There are other ways to earn miles as well, and some restrictions apply. Be sure to investigate the offer thoroughly for full program details. You can read our BankDirect review for more details about this and other offers, too.Apply NowFinal WordWhen choosing a bank, it’s important to find one that suits your needs – whether that’s favorable interest-bearing accounts, no fees, or online banking features. It’s also a big bonus when you can get great perks along with good banking. Be on the lookout for and take advantage of cash and giveaways, and your banking experience will be all the more pleasurable.Brian Martucci

What is a Non-Banking Financial Company (NBFC)?A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).2. What does conducting financial activity as “principal business” mean?Financial activity as principal business is when a company’s financial assets constitute more than 50 per cent of the total assets and income from financial assets constitute more than 50 per cent of the gross income. A company which fulfils both these criteria will be registered as NBFC by RBI. The term 'principal business' is not defined by the Reserve Bank of India Act. The Reserve Bank has defined it so as to ensure that only companies predominantly engaged in financial activity get registered with it and are regulated and supervised by it. Hence if there are companies engaged in agricultural operations, industrial activity, purchase and sale of goods, providing services or purchase, sale or construction of immovable property as their principal business and are doing some financial business in a small way, they will not be regulated by the Reserve Bank. Interestingly, this test is popularly known as 50-50 test and is applied to determine whether or not a company is into financial business.3. NBFCs are doing functions similar to banks. What is difference between banks & NBFCs?NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below:i. NBFC cannot accept demand deposits;ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.4. Is it necessary that every NBFC should be registered with RBI?In terms of Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can commence or carry on business of a non-banking financial institution without a) obtaining a certificate of registration from the Bank and without having a Net Owned Funds of ₹ 25 lakhs (₹ Two crore since April 1999). However, in terms of the powers given to the Bank, to obviate dual regulation, certain categories of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, Nidhi companies as notified under Section 620A of the Companies Act, 1956, Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982,Housing Finance Companies regulated by National Housing Bank, Stock Exchange or a Mutual Benefit company.5. What are the requirements for registration with RBI?A company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution as defined under Section 45 I(a) of the RBI Act, 1934 should comply with the following:i. it should be a company registered under Section 3 of the companies Act, 1956ii. It should have a minimum net owned fund of ₹ 200 lakh. (The minimum net owned fund (NOF) required for specialized NBFCs like NBFC-MFIs, NBFC-Factors, CICs is indicated separately in the FAQs on specialized NBFCs)6. What is the procedure for application to the Reserve Bank for Registration?The applicant company is required to apply online and submit a physical copy of the application along with the necessary documents to the Regional Office of the Reserve Bank of India. The application can be submitted online by accessing RBI’s secured website https://cosmos.rbi.org.in . At this stage, the applicant company will not need to log on to the COSMOS application and hence user ids are not required. The company can click on “CLICK” for Company Registration on the login page of the COSMOS Application. A window showing the Excel application form available for download would be displayed. The company can then download suitable application form (i.e. NBFC or SC/RC) from the above website, key in the data and upload the application form. The company may note to indicate the correct name of the Regional Office in the field “C-8” of the “Annex-I dentification Particulars” in the Excel application form. The company would then get a Company Application Reference Number for the CoR application filed on-line. Thereafter, the company has to submit the hard copy of the application form (indicating the online Company Application Reference Number, along with the supporting documents, to the concerned Regional Office. The company can then check the status of the application from the above mentioned secure address, by keying in the acknowledgement number.7. What are the essential documents required to be submitted along with the application form to the Regional Office of the Reserve Bank?The application form and an indicative checklist of the documents required to be submitted along with the application is available at www.rbi.org.in → Site Map → NBFC List → Forms/ Returns.8. What are systemically important NBFCs?NBFCs whose asset size is of ₹ 500 cr or more as per last audited balance sheet are considered as systemically important NBFCs. The rationale for such classification is that the activities of such NBFCs will have a bearing on the financial stability of the overall economy.B. Entities Regulated by RBI and applicable regulations9. Does the Reserve Bank regulate all financial companies?No. Housing Finance Companies, Merchant Banking Companies, Stock Exchanges, Companies engaged in the business of stock-broking/sub-broking, Venture Capital Fund Companies, Nidhi Companies, Insurance companies and Chit Fund Companies are NBFCs but they have been exempted from the requirement of registration under Section 45-IA of the RBI Act, 1934 subject to certain conditions.Housing Finance Companies are regulated by National Housing Bank, Merchant Banker/Venture Capital Fund Company/stock-exchanges/stock brokers/sub-brokers are regulated by Securities and Exchange Board of India, and Insurance companies are regulated by Insurance Regulatory and Development Authority. Similarly, Chit Fund Companies are regulated by the respective State Governments and Nidhi Companies are regulated by Ministry of Corporate Affairs, Government of India. Companies that do financial business but are regulated by other regulators are given specific exemption by the Reserve Bank from its regulatory requirements for avoiding duality of regulation.It may also be mentioned that Mortgage Guarantee Companies have been notified as Non-Banking Financial Companies under Section 45 I(f)(iii) of the RBI Act, 1934. Core Investment Companies with asset size of less than ₹ 100 crore, and those with asset size of ₹ 100 crore and above but not accessing public funds are exempted from registration with the RBI.10. What are the different types/categories of NBFCs registered with RBI?NBFCs are categorized a) in terms of the type of liabilities into Deposit and Non-Deposit accepting NBFCs, b) non deposit taking NBFCs by their size into systemically important and other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and c) by the kind of activity they conduct. Within this broad categorization the different types of NBFCs are as follows:I. Asset Finance Company (AFC) : An AFC is a company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines. Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.II. Investment Company (IC) : IC means any company which is a financial institution carrying on as its principal business the acquisition of securities,III. Loan Company (LC): LC means any company which is a financial institution carrying on as its principal business the providing of finance whether by making loans or advances or otherwise for any activity other than its own but does not include an Asset Finance Company.IV. Infrastructure Finance Company (IFC): IFC is a non-banking finance company a) which deploys at least 75 per cent of its total assets in infrastructure loans, b) has a minimum Net Owned Funds of ₹ 300 crore, c) has a minimum credit rating of ‘A ‘or equivalent d) and a CRAR of 15%.V. Systemically Important Core Investment Company (CIC-ND-SI): CIC-ND-SI is an NBFC carrying on the business of acquisition of shares and securities which satisfies the following conditions:-(a) it holds not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, debt or loans in group companies;(b) its investments in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its Total Assets;(c) it does not trade in its investments in shares, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment;(d) it does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the RBI act, 1934 except investment in bank deposits, money market instruments, government securities, loans to and investments in debt issuances of group companies or guarantees issued on behalf of group companies.(e) Its asset size is ₹ 100 crore or above and(f) It accepts public fundsVI. Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC) : IDF-NBFC is a company registered as NBFC to facilitate the flow of long term debt into infrastructure projects. IDF-NBFC raise resources through issue of Rupee or Dollar denominated bonds of minimum 5 year maturity. Only Infrastructure Finance Companies (IFC) can sponsor IDF-NBFCs.VII. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI): NBFC-MFI is a non-deposit taking NBFC having not less than 85% of its assets in the nature of qualifying assets which satisfy the following criteria:a. loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding ₹ 1,00,000 or urban and semi-urban household income not exceeding ₹ 1,60,000;b. loan amount does not exceed ₹ 50,000 in the first cycle and ₹ 1,00,000 in subsequent cycles;c. total indebtedness of the borrower does not exceed ₹ 1,00,000;d. tenure of the loan not to be less than 24 months for loan amount in excess of ₹ 15,000 with prepayment without penalty;e. loan to be extended without collateral;f. aggregate amount of loans, given for income generation, is not less than 50 per cent of the total loans given by the MFIs;g. loan is repayable on weekly, fortnightly or monthly instalments at the choice of the borrowerVIII. Non-Banking Financial Company – Factors (NBFC-Factors): NBFC-Factor is a non-deposit taking NBFC engaged in the principal business of factoring. The financial assets in the factoring business should constitute at least 50 percent of its total assets and its income derived from factoring business should not be less than 50 percent of its gross income.IX. Mortgage Guarantee Companies (MGC) - MGC are financial institutions for which at least 90% of the business turnover is mortgage guarantee business or at least 90% of the gross income is from mortgage guarantee business and net owned fund is ₹ 100 crore.X. NBFC- Non-Operative Financial Holding Company (NOFHC) is financial institution through which promoter / promoter groups will be permitted to set up a new bank .It’s a wholly-owned Non-Operative Financial Holding Company (NOFHC) which will hold the bank as well as all other financial services companies regulated by RBI or other financial sector regulators, to the extent permissible under the applicable regulatory prescriptions.11. What are the powers of the Reserve Bank with regard to 'Non-Bank Financial Companies’, that is, companies that meet the 50-50 Principal Business Criteria?The Reserve Bank has been given the powers under the RBI Act 1934 to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs that meet the 50-50 criteria of principal business. The Reserve Bank can penalize NBFCs for violating the provisions of the RBI Act or the directions or orders issued by RBI under RBI Act. The penal action can also result in RBI cancelling the Certificate of Registration issued to the NBFC, or prohibiting them from accepting deposits and alienating their assets or filing a winding up petition.12. What action can be taken against persons/financial companies making false claim of being regulated by the Reserve Bank?It is illegal for any financial entity or unincorporated body to make a false claim of being regulated by the Reserve Bank to mislead the public to collect deposits and is liable for penal action under the Indian Penal Code. Information in this regard may be forwarded to the nearest office of the Reserve Bank and the Police.13. What action is taken if financial companies which are lending or making investments as their principal business do not obtain a Certificate of Registration from the Reserve Bank?If companies that are required to be registered with the Reserve Bank as NBFCs, are found to be conducting non-banking financial activity, such as, lending, investment or deposit acceptance as their principal business, without seeking registration, the Reserve Bank can impose penalty or fine on them or can even prosecute them in a court of law. If members of public come across any entity which does non-banking financial activity but does not figure in the list of authorized NBFC on RBI website, they should inform the nearest Regional Office of the Reserve Bank, for appropriate action to be taken for contravention of the provisions of the RBI Act, 1934.14. Where can one find list of Registered NBFCs and instructions issued to NBFCs?The list of registered NBFCs is available on the web site of Reserve Bank of India and can be viewed at www.rbi.org.in → Sitemap → NBFC List. The instructions issued to NBFCs from time to time are also hosted at www.rbi.org.in → Notifications → Master Circulars → Non-banking, besides, being issued through Official Gazette notifications and press releases.15. What are the regulations applicable on non-deposit accepting NBFCs with asset size of less than ₹ 500 crore?The regulation on non-deposit accepting NBFCs with asset size of less than ₹ 500 crore would be as under:(i) They shall not be subjected to any regulation either prudential or conduct of business regulations viz., Fair Practices Code (FPC), KYC, etc., if they have not accessed any public funds and do not have a customer interface.(ii) Those having customer interface will be subjected only to conduct of business regulations including FPC, KYC etc., if they are not accessing public funds.(iii) Those accepting public funds will be subjected to limited prudential regulations but not conduct of business regulations if they have no customer interface.(iv) Where both public funds are accepted and customer interface exist, such companies will be subjected both to limited prudential regulations and conduct of business regulations.16. What does the term public funds include? Is it the same as public deposits?Public funds are not the same as public deposits. Public funds include public deposits, inter-corporate deposits, bank finance and all funds received whether directly or indirectly from outside sources such as funds raised by issue of Commercial Papers, debentures etc. However, even though public funds include public deposits in the general course, it may be noted that CICs/CICs-ND-SI cannot accept public deposits.Further, indirect receipt of public funds means funds received not directly but through associates and group entities which have access to public funds.17. What are the various prudential regulations applicable to NBFCs?The Bank has issued detailed directions on prudential norms, vide Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 and Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015. Applicable regulations vary based on the deposit acceptance or systemic importance of the NBFC.The directions inter alia, prescribe guidelines on income recognition, asset classification and provisioning requirements applicable to NBFCs, exposure norms, disclosures in the balance sheet, requirement of capital adequacy, restrictions on investments in land and building and unquoted shares, loan to value (LTV) ratio for NBFCs predominantly engaged in business of lending against gold jewellery, besides others. Deposit accepting NBFCs have also to comply with the statutory liquidity requirements. Details of the prudential regulations applicable to NBFCs holding deposits and those not holding deposits is available in the section ‘Regulation – Non-Banking – Notifications - Master Circulars’ in the RBI website.18. Please explain the terms ‘owned fund’ and ‘net owned fund’ in relation to NBFCs?‘Owned Fund’ means aggregate of the paid-up equity capital, preference shares which are compulsorily convertible into equity, free reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of asset, excluding reserves created by revaluation of asset, after deducting therefrom accumulated balance of loss, deferred revenue expenditure and other intangible assets. 'Net Owned Fund' is the amount as arrived at above, minus the amount of investments of such company in shares of its subsidiaries, companies in the same group and all other NBFCs and the book value of debentures, bonds, outstanding loans and advances including hire purchase and lease finance made to and deposits with subsidiaries and companies in the same group, to the extent it exceeds 10% of the owned fund.19. What are the responsibilities of the NBFCs registered with Reserve Bank, with regard to submission on compliances and other information?A. Returns to be submitted by deposit taking NBFCsNBS-1 Quarterly Returns on deposits in First Schedule.NBS-2 Quarterly return on Prudential Norms is required to be submitted by NBFC accepting public deposits.NBS-3 Quarterly return on Liquid Assets by deposit taking NBFC.NBS-4 Annual return of critical parameters by a rejected company holding public deposits. (NBS-5 stands withdrawn as submission of NBS 1 has been made quarterly.)NBS-6 Monthly return on exposure to capital market by deposit taking NBFC with total assets of ₹ 100 crore and above.Half-yearly ALM return by NBFC holding public deposits of more than ₹ 20 crore or asset size of more than ₹ 100 croreAudited Balance sheet and Auditor’s Report by NBFC accepting public deposits.Branch Info Return.B. Returns to be submitted by NBFCs-ND-SINBS-7 A Quarterly statement of capital funds, risk weighted assets, risk asset ratio etc., for NBFC-ND-SI.Monthly Return on Important Financial Parameters of NBFCs-ND-SI.ALM returns:(i) Statement of short term dynamic liquidity in format ALM [NBS-ALM1] -Monthly,(ii) Statement of structural liquidity in format ALM [NBS-ALM2] Half yearly,(iii) Statement of Interest Rate Sensitivity in format ALM -[NBS-ALM3], Half yearlyBranch Info returnC. Quarterly return on important financial parameters of non deposit taking NBFCs having assets of more than ₹ 50 crore and above but less than ₹ 100 croreBasic information like name of the company, address, NOF, profit / loss during the last three years has to be submitted quarterly by non-deposit taking NBFCs with asset size between ₹ 50 crore and ₹ 100 crore.There are other generic reports to be submitted by all NBFCs as elaborated in Master Circular on Returns to be submitted by NBFCs as available on www.rbi.org.in → Notifications → Master Circulars → Non-banking and Circular DNBS (IT) CC.No.02/24.01.191/2015-16 dated July 9, 2015 as available on www.rbi.org.in → Notifications.20. Whether the circular on Lending against shares dated August 21, 2014 is applicable to existing loans also?The Circular is applicable from the date of the circular and therefore the Circular shall not apply on those transactions which have been entered into prior to the date of the Circular. However, the guidelines will be applicable in case of roll-over/ renewal of loans. Guidelines will not apply to transactions where documents have been executed prior to the date of the circular and disbursement is pending.21. Will the circular on Lending against shares be applicable on restructured accounts?No. the Circular will not be applicable on restructured accounts22. Will the Circular on Lending against shares be applicable on those loans where the primary security is not shares/ units of mutual funds?Loans which are against the collateral of multiple securities and it is specifically agreed to in the agreement that primary security would be something other than shares/ units of mutual funds, LTV would not be applicable. However, reporting requirements shall remain. In cases where such differentiation is not made (thereby NBFCs can off-load shares at the instance of a default), LTV would be applicable.23. Whether LTV for loans issued against the collateral of shares is to be computed at scrip level or at portfolio level?LTV would be computed at portfolio level.24. Whether PoA/ Non-Disposal undertaking structure by whatever name called is covered under the Circular on Lending against shares?Yes, the Circular would be applicable and the type of encumbrance created is immaterial.25. Does the definition of “companies in a group” as given in Systemically Important Non-Banking Financial (non-deposit accepting or holding) companies Prudential Norms Directions, 2015 apply in respect of concentration of credit/ investment norms.No, the definition of “companies is a group” is only for the purpose of determining the applicability of prudential norms on multiple NBFCs in a group.26. Whether acquisition/ transfer of shareholding of 26 per cent or more of the paid up equity capital of an NBFC within the same group i.e. intra group transfers require prior approval of the Bank?Yes, prior approval would be required in all cases of acquisition/ transfer of shareholding of 26 per cent or more of the paid up equity capital of an NBFC. In case of intra-group transfers, NBFCs shall submit an application, on the company letter head, for obtaining prior approval of the Bank. Based on the application of the NBFC, it would be decided, on a case to case basis, whether the NBFC requires to submit the documents as prescribed at para 3 of DNBR (PD) CC Kjøpesenter Gjøvik & Hamar. 065/03.10.001/2015-16 dated July 9, 2015 for processing the application of the company. In cases where approval is granted without the documents, the NBFC would be required to submit the same after the process of transfer is complete.27. NBFCs are charging high interest rates from their borrowers. Is there any ceiling on interest rate charged by the NBFCs to their borrowers?Reserve Bank of India has deregulated interest rates to be charged to borrowers by financial institutions (other than NBFC- Micro Finance Institution). The rate of interest to be charged by the company is governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFCs. However, the NBFCs have to be transparent and the rate of interest and manner of arriving at the rate of interest to different categories of borrowers should be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter etc.28. RBI permits NBFCs to hedge their exposure through dealing in IRFs. Currently, IRFs are on single stock 10 yr 8.40% 2024 security. The Composition of Balance Sheet is mix of fixed/ floating interest rate and different credit profile. Whether 10 yr single security can be used for hedging 2-3 yr liability and asset (Duration adjusted) or can be used for investment in other long tenor securities or corporate bonds. Alternatively, whether IRFs can be used holistically for hedging assets and liabilities in dynamic interest rate scenarios within total Balance Sheet amount and within hedging definition?IRF may be used to hedge interest rate risk associated with single asset/ liability or a group of assets/ liabilities. Hence, NBFCs are permitted to use duration based hedging for managing interest rate risk.29. Whether NBFCs as trading member can participate in the IRF market only for hedging or can also take trading position?As per extant guidelines NBFCs with asset size of ₹ 1,000 cr and above are permitted to participate in IRF as trading members. While, trading members of stock exchanges are permitted to execute trades on their own account as well as on account of their clients, banks and PDs have been allowed to deal in IRF for both hedging and trading on own account and not on client’s account. Similarly, NBFCs as trading members are permitted to execute their proprietary trades and not to undertake transactions on behalf of clients.C. Residuary Non-Banking Companies (RNBCs)30. What is a Residuary Non-Banking Company (RNBC)? In what way it is different from other NBFCs?Residuary Non-Banking Company is a class of NBFC which is a company and has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner and not being Investment, Asset Financing, Loan Company. These companies are required to maintain investments as per directions of RBI, in addition to liquid assets. The functioning of these companies is different from those of NBFCs in terms of method of mobilization of deposits and requirement of deployment of depositors' funds as per Directions. Besides, Prudential Norms Directions are applicable to these companies also.31. We understand that there is no ceiling on raising of deposits by RNBCs, then how safe is deposit with them?It is true that there is no ceiling on raising of deposits by RNBCs. However, every RNBC has to ensure that the amounts deposited with it are fully invested in approved investments. In other words, in order to secure the interests of depositor, such companies are required to invest 100 per cent of their deposit liability into highly liquid and secure instruments, namely, Central/State Government securities, fixed deposits with scheduled commercial banks (SCB), Certificate of Deposits of SCB/FIs, units of Mutual Funds, etc.32. Can RNBC forfeit deposit if deposit instalments are not paid regularly or discontinued?No. Residuary Non-Banking Company cannot forfeit any amount deposited by the depositor, or any interest, premium, bonus or other advantage accrued thereon.33. What is the rate of interest that an RNBC must pay on deposits and what should be maturity period of deposits taken by them?The minimum interest an RNBC should pay on deposits should be 5% (to be compounded annually) on the amount deposited in lump sum or at monthly or longer intervals; and 3.5% (to be compounded annually) on the amount deposited under daily deposit scheme. Interest here includes premium, bonus or any other advantage, that an RNBC promises to the depositor by way of return. An RNBC can accept deposits for a minimum period of 12 months and maximum period of 84 months from the date of receipt of such deposit. They cannot accept deposits repayable on demand. However, at present, the only RNBCs in existence (Peerless) has been directed by the Reserve Bank to stop collecting deposits, repay the deposits to the depositor and wind up their RNBC business as their business model is inherently unviable.D. Definition of deposits, Eligible / Ineligible Institutions to accept deposits and Related Matters34. What is ‘deposit’ and ‘public deposit’? Is it defined anywhere?The term ‘deposit’ is defined under Section 45 I(bb) of the RBI Act, 1934. ‘Deposit’ includes and shall be deemed always to have included any receipt of money by way of deposit or loan or in any other form but does not include:i. amount raised by way of share capital, or contributed as capital by partners of a firm;ii. amount received from a scheduled bank, a co-operative bank, a banking company, Development bank, State Financial Corporation, IDBI or any other institution specified by RBI;iii. amount received in ordinary course of business by way of security deposit, dealership deposit, earnest money, advance against orders for goods, properties or services;iv. amount received by a registered money lender other than a body corporate;v. amount received by way of subscriptions in respect of a ‘Chit’.Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits ( Reserve Bank) Directions, 1998 defines a ‘ public deposit’ as a ‘deposit’ as defined under Section 45 I(bb) of the RBI Act, 1934 and further excludes the following:a. amount received from the Central/ State Government or any other source where repayment is guaranteed by Central/ State Government or any amount received from local authority or foreign government or any foreign citizen/ authority/ person;b. any amount received from financial institutions specified by RBI for this purpose;c. any amount received by a company from any other company;d. amount received by way of subscriptions to shares, stock, bonds or debentures pending allotment or by way of calls in advance if such amount is not repayable to the members under the articles of association of the company;e. amount received from directors of a company or from its shareholders by private company or by a private company which has become a public company;f. amount raised by issue of bonds or debentures secured by mortgage of any immovable property or other asset of the company subject to conditions;fa. any amount raised by issuance of non-convertible debentures with a maturity more than one year and having the minimum subscription per investor at ₹ 1 crore and above, provided it is in accordance with the guidelines issued by the Bank.g. the amount brought in by the promoters by way of unsecured loan;h. amount received from a mutual fund;i. any amount received as hybrid debt or subordinated debt;j. amount received from a relative of the director of an NBFC;k. any amount received by issuance of Commercial Paper.l. any amount received by a systemically important non-deposit taking non-banking financial company by issuance of ‘perpetual debt instruments’m. any amount raised by the issue of infrastructure bonds by an Infrastructure Finance CompanyThus, the directions exclude from the definition of public deposit, amount raised from certain set of informed lenders who can make independent decision.35. Which entities can legally accept deposits from public?Banks, including co-operative banks, can accept deposits. Non-bank finance companies, which have been issued Certificate of Registration by RBI with a specific licence to accept deposits, are entitled to accept public deposit. In other words, not all NBFCs registered with the Reserve Bank are entitled to accept deposits but only those that hold a deposit accepting Certificate of Registration can accept deposits. They can, however, accept deposits, only to the extent permissible. Housing Finance Companies, which are again specifically authorized to collect deposits and companies authorized by Ministry of Corporate Affairs under the Companies Acceptance of Deposits Rules framed by Central Government under the Companies Act can also accept deposits also upto a certain limit. Cooperative Credit Societies can accept deposits from their members but not from the general public. The Reserve Bank regulates the deposit acceptance only of banks, cooperative banks and NBFCs.It is not legally permissible for other entities to accept public deposits. Unincorporated bodies like individuals, partnership firms, and other association of individuals are prohibited from carrying on the business of acceptance of deposits as their principal business. Such unincorporated bodies are prohibited from even accepting deposits if they are carrying on financial business.36. Can all NBFCs accept deposits? Is there any ceiling on acceptance of Public Deposits? What is the rate of interest and period of deposit which NBFCs can accept?All NBFCs are not entitled to accept public deposits. Only those NBFCs to which the Bank had given a specific authorisation and have an investment grade rating are allowed to accept/ hold public deposits to a limit of 1.5 times of its Net Owned Funds. All existing unrated AFCs that have been allowed to accept deposits shall have to get themselves rated by March 31, 2016. Those AFCs that do not get an investment grade rating by March 31, 2016, will not be allowed to renew existing or accept fresh deposits thereafter. In the intervening period, i.e. till March 31, 2016, unrated AFCs or those with a sub-investment grade rating can only renew existing deposits on maturity, and not accept fresh deposits, till they obtain an investment grade rating.However, as a matter of public policy, Reserve Bank has decided that only banks should be allowed to accept public deposits and as such has since 1997 not issued any Certificate of Registration (CoR) to new NBFCs for acceptance of public deposits.Presently, the maximum rate of interest an NBFC can offer is 12.5%. The interest may be paid or compounded at rests not shorter than monthly rests. The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.37. In respect of companies which do not fulfill the 50-50 criteria but are accepting deposits – do they come under RBI purview?A company which does not have financial assets which is more than 50% of its total assets and does not derive at least 50% of its gross income from such assets is not an NBFC. Its principal business would be non-financial activity like agricultural operations, industrial activity, purchase or sale of goods or purchase/construction of immoveable property, and will be a non-banking non-financial company. Acceptance of deposits by a Non-Banking Non-Financial Company are governed by the rules and regulations issued by the Ministry of Corporate Affairs.38. Why is the RBI so restrictive in allowing NBFCs to raise public deposits?The Reserve Bank's overarching concern while supervising any financial entity is protection of depositors' interest. Depositors place deposit with any entity on trust unlike an investor who invests in the shares of a company with the intention of sharing the risk as well as return with the promoters. Protection of depositors' interest thus is supreme in financial regulation. Banks are the most regulated financial entities. The Deposit Insurance and Credit Guarantee Corporation pays insurance on deposits up to ₹ One lakh in case a bank failed.39. Which are the NBFCs specifically authorized by RBI to accept deposits?The Reserve Bank publishes the list of NBFCs that hold a valid Certificate of Registration for accepting deposits on its website: www.rbi.org.in → Sitemap → NBFC List → List of NBFCs Permitted to Accept Deposits. At times, some companies are temporarily prohibited from accepting public deposits. The Reserve Bank publishes the list of NBFCs temporarily prohibited also on its website. The Reserve Bank keeps both these lists updated. Members of the public are advised to check both these lists before placing deposits with NBFCs.40. Whether NBFCs can accept deposits from NRIs?Effective from April 24, 2004, NBFCs cannot accept deposits from NRIs except deposits by debit to NRO account of NRI provided such amount does not represent inward remittance or transfer from NRE/FCNR (B) account. However, the existing NRI deposits can be renewed.41. Can a Co-operative Credit Society accept deposits from the public?No. Co-operative Credit Societies cannot accept deposits from general public. They can accept deposits only from their members within the limit specified in their bye laws.42. Can a Salary Earners’ Society accept deposits from the public?No. These societies are formed for salaried employees and hence they can accept deposit only from their own members and not from general public.43. Is nomination facility available to the Depositors of NBFCs?Yes, nomination facility is available to the depositors of NBFCs. The Rules for nomination facility are provided for in section 45QB of the Reserve Bank of India Act, 1934. Non-Banking Financial Companies have been advised to adopt the Banking Companies (Nomination) Rules, 1985 made under Section 45ZA of the Banking Regulation Act, 1949. Accordingly, depositor/s of NBFCs are permitted to nominate one person to whom the NBFC can return the deposit in the event of the death of the depositor/s. NBFCs are advised to accept nominations made by the depositors in the form similar to one specified under the said rules, viz Form DA 1 for the purpose of nomination, and Form DA2 and DA3 for cancellation of nomination and change of nomination respectively.44. How does the Reserve Bank come to know about unauthorized acceptance of deposits by companies not registered with it or of NBFCs engaged in lending or investment activities without obtaining the Certificate of Registration from it?NBFCs that ought to have sought registration from RBI but are functioning without doing so are committing a breach of law. Such companies are liable for action as envisaged under the RBI Act, 1934. To identify such entities, RBI has multiple sources of information. These include market intelligence, complaints received from affected parties, industry sources, and exception reports submitted by statutory auditors in terms of Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2008. Further, the State Level Co-ordination Committees (SLCC) is convened by RBI in all the States/UTs on quarterly basis. The SLCC is now chaired by the Chief Secretary/ Administrator of the concerned State/UT and has, as its members, apart from the Reserve Bank, the Regional Directorate of the MCA/ ROC, local unit of SEBI, NHB, Registrar of Chits, ICAI, Economic Intelligence Unit of the State Police and officials from Law and Home Ministries of the State Government. As all the relevant financial sector regulators and enforcement agencies participate in the SLCC, it is possible to quickly share the information and agree on an effective course of action to be taken against entities indulging in unauthorized and suspect businesses involving funds mobilization from public.45. Can Proprietorship/Partnership Concerns associated/not associated with registered NBFCs accept public deposits?No. Proprietorship and partnership concerns are un-incorporated bodies. Hence they are prohibited under the RBI Act 1934 from accepting public deposits.46. There are many jewellery shops taking money from the public in instalments. Is this amounting to acceptance of deposits?It depends on whether the money is received as advance for delivering jewellery at a future date or whether the money is received with a promise to return the same with interest. The money accepted by Jewellery shops in instalments for the purpose of delivering jewellery at the end of the period of contract is not deposit. It will amount to acceptance of deposits if in return for the money received, the jewellery shop promises to return the principal amount along with interest.47. What action can be taken if such unincorporated entities accept public deposits? What if NBFCs which have not been authorized to accept public deposits use proprietorship/partnership firms floated by their promoters to collect deposits?Such unincorporated entities, if found accepting public deposits, are liable for criminal action. Further NBFCs are prohibited by RBI from associating with any unincorporated bodies. If NBFCs associate themselves with proprietorship/partnership firms accepting deposits in contravention of RBI Act, they are also liable to be prosecuted under criminal law or under the Protection of Interest of Depositors (in Financial Establishments) Act, if passed by the State Governments.48. What is the difference between acceptance of money by Chit Funds and acceptance of deposits?Deposits are defined under the RBI Act 1934 as acceptance of money other than that raised by way of share capital, money received from banks and other financial institutions, money received as security deposit, earnest money and advance against goods or services and subscriptions to chits. All other amounts, received as loan or in any form are treated as deposits. Chit Funds activity involves contributions by members in instalments by way of subscription to the Chit and by rotation each member of the Chit receives the chit amount. The subscriptions are specifically excluded from the definition of deposits and cannot be termed as deposits. While Chit funds may collect subscriptions as above, they are prohibited by RBI from accepting deposits with effect from August 2009.E. Depositor Protection Issues49. What are the salient features of NBFC regulations which the depositor may note at the time of investment?Some of the important regulations relating to acceptance of deposits by NBFCs are as under:The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 12.5 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests.NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors.NBFCs should have minimum investment grade credit rating.The deposits with NBFCs are not insured.The repayment of deposits by NBFCs is not guaranteed by RBI.Certain mandatory disclosures are to be made about the company in the Application Form issued by the company soliciting deposits.50. What precautions should a depositor take before placing deposit with an NBFC?A depositor wanting to place deposit with an NBFC must take the following precautions before placing deposits:That the NBFC is registered with RBI and specifically authorized by the RBI to accept deposits. A list of deposit taking NBFCs entitled to accept deposits is available at www.rbi.org.in → Sitemap → NBFC List. The depositor should check the list of NBFCs permitted to accept public deposits and also check that it is not appearing in the list of companies prohibited from accepting deposits, which is available at www.rbi.org.in → Sitemap → NBFC List → NBFCs who have been issued prohibitory orders, winding up petitions filed and legal cases under Chapter IIIB, IIIC and others.NBFCs have to prominently display the Certificate of Registration (CoR) issued by the Reserve Bank on its site. This certificate should also reflect that the NBFC has been specifically authorized by RBI to accept deposits. Depositors must scrutinize the certificate to ensure that the NBFC is authorized to accept deposits.The maximum interest rate that an NBFC can pay to a depositor should not exceed 12.5%. The Reserve Bank keeps altering the interest rates depending on the macro-economic environment. The Reserve Bank publishes the change in the interest rates on www.rbi.org.in → Sitemap → NBFC List → FAQs.The depositor must insist on a proper receipt for every amount of deposit placed with the company. The receipt should be duly signed by an officer authorized by the company and should state the date of the deposit, the name of the depositor, the amount in words and figures, rate of interest payable, maturity date and amount.In the case of brokers/agents etc collecting public deposits on behalf of NBFCs, the depositors should satisfy themselves that the brokers/agents are duly authorized by the NBFC.The depositor must bear in mind that public deposits are unsecured and Deposit Insurance facility is not available to depositors of NBFCs.The Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.51. Does RBI guarantee the repayment of the deposits collected by NBFCs?No. The Reserve Bank does not guarantee repayment of deposits by NBFCs even though they may be authorized to collect deposits. As such, investors and depositors should take informed decisions while placing deposit with an NBFC.52. In case an NBFC defaults in repayment of deposit what course of action can be taken by depositors?If an NBFC defaults in repayment of deposit, the depositor can approach Company Law Board or Consumer Forum or file a civil suit in a court of law to recover the deposits. NBFCs are also advised to follow a grievance redress procedure as indicated in reply to question 57 below. Further, at the level of the State Government, the State Legislations on Protection of Interest of Depositors (in Financial Establishments) empowers the State Governments to take action even before the default takes place or complaints are received from depositors. If there is perpetration of an offence and if the intention is to defraud, the State Government can even attach properties.53. What is the role of Company Law Board in protecting the interest of depositors? How can one approach it?When an NBFC fails to repay any deposit or part thereof in accordance with the terms and conditions of such deposit, the Company Law Board (CLB) either on its own motion or on an application from the depositor, directs by order the Non-Banking Financial Company to make repayment of such deposit or part thereof forthwith or within such time and subject to such conditions as may be specified in the order. After making the payment, the company will need to file the compliance with the local office of the Reserve Bank of India.As explained above, the depositor can approach CLB by mailing an application in prescribed form to the appropriate bench of the Company Law Board according to its territorial jurisdiction along with the prescribed fee.