Chapter IIIB — Non-Banking Institutions and Financial Institutions
Section 45IB: Maintenance of percentage of assets
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45IB requires specified NBFCs to invest and continue to hold a prescribed percentage of deposits in approved securities/unencumbered assets in the manner notified or directed under the section.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45IB in 2 minutes
Statutory structure and clause / subsection decode
This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.
Scope
Section 45IB requires specified NBFCs to invest and continue to hold a prescribed percentage of deposits in approved securities/unencumbered assets in the manner notified or directed under the section.
Operative limb
The statutory liquidity/asset-maintenance obligation is distinct from the reserve fund under Section 45IC and from prudential capital ratios under current RBI Directions.
Legal boundary
The applicable percentage, eligible assets, valuation, custody and reporting should be taken from the current RBI notification/Direction for the NBFC category.
Worked practical example
Facts. A deposit-taking NBFC cannot count an asset merely because it is liquid in commercial terms; it must satisfy the statutory/RBI eligibility and encumbrance conditions for Section 45IB.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45IB and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. The applicable percentage, eligible assets, valuation, custody and reporting should be taken from the current RBI notification/Direction for the NBFC category.
- Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.
Connected provisions and instruments
Questions and answers
What is the purpose of Section 45IB?
Maintenance of percentage of assets: Section 45IB requires specified NBFCs to invest and continue to hold a prescribed percentage of deposits in approved securities/unencumbered assets in the manner notified or directed under the section.
Which statutory limb should be checked first?
Scope - Section 45IB requires specified NBFCs to invest and continue to hold a prescribed percentage of deposits in approved securities/unencumbered assets in the manner notified or directed under the section.
What is the next legal boundary?
Operative limb - The statutory liquidity/asset-maintenance obligation is distinct from the reserve fund under Section 45IC and from prudential capital ratios under current RBI Directions.
What record should support the conclusion?
Section 45IB file evidence: Working papers should reconcile public deposits, required percentage, eligible unencumbered assets and any shortfall for each reporting date.
Primary sources
- Department of Financial Services - consolidated RBI Act (states amendments through Finance Act, 2022)
- India Code - Reserve Bank of India Act, 1934
Source control for Section 45IB: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.