Why don't financial companies create DRR i e Why is there a clause in companies Act which allows Banking - Accountancy - Issue and Redemption of Debentures

Question

Why don't financial companies create DRR i e Why is there a clause
in companies Act which allows Banking Institutions and All India
Financial Institutions to redeem debentures without creating
DRR????

Neha Chopra · Accepted Answer

Dear Student,

Financial and Banking Institutions are governed by separate laws of
banking and therefore as per companies Act they are exempted from
preparation of DRR;

Also, financial companies have more stringent regulations as
compared to NBFCs and other companies, which is not covered in our
syllabus ;

Regards,

Why don't financial companies create DRR i.e. Why is there a clause in companies Act which allows Banking Institutions and All India Financial Institutions to redeem debentures without creating DRR????