Finance Bill 2023 proposes to amend Sec 94B w.e.f April 1, 2024, to provide relief to notified non-banking financial companies (NBFCs) from the restrictions imposed on excess interest deduction under Sec 94B(1) for payments to non-resident AEs; Currently the restrictions on such excess interest deductions are not applicable to companies engaged in banking or insurance business. This move will help to improve the investment in NBFC sector in India and will help to better penetration of financial products.