Haryana to set up NBFC for efficient management of funds

The Haryana government has decided to form a non-banking financial company (NBFC) — Haryana State Financial Services Limited — to act as an in-house treasury manager for efficient management of surplus funds of State public enterprises and autonomous bodies.

The decision was taken here today at a meeting of the State cabinet.

The NBFC would enable quick and hassle-free lending and create financial discipline among the State government entities. It would also result in centralised mechanism for management of funds under the overall control and supervision of the General Administration Department.

It will be established as a limited company under the Companies Act and registered with the Reserve Bank of India (RBI) as an NBFC.

The authorised capital of the company will be ₹10 crore and the paid up capital will be ₹2 crore in the first instance.

The entire equity of the company will be held by the State government while the General Administration Department will be its administrative department.

The company will lend money, accept deposits and provide financial assistance with or without security to the State government, a body corporate, government company, State or municipal body, local body, wholly or partly owned by the government.