NBFC Registration
Get your Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). Enable lending, investment, and financial services under RBI supervision.
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What is an NBFC?
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act and licensed by the Reserve Bank of India (RBI) under Section 45-IA of the RBI Act, 1934. NBFCs provide a wide range of financial services including loans, advances, acquisition of shares/stocks/bonds, hire-purchase, insurance, and chit fund activities. Unlike banks, NBFCs cannot accept demand deposits, issue cheques, or provide deposit insurance. However, they play a critical role in India's financial ecosystem, especially in credit access for underserved segments.
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Types of NBFCs (RBI Categorization)
NBFC-ICC (Investment & Credit)
Provides loans and credit facilities to individuals and businesses. Most common type.
NBFC-MFI (Microfinance)
Provides small loans to low-income borrowers in rural/semi-urban areas.
NBFC-P2P (Peer to Peer)
Online platform connecting borrowers and lenders directly.
NBFC-Account Aggregator
Securely aggregates financial data of customers for sharing with financial institutions.
Eligibility & Requirements
How to Obtain NBFC License from RBI
NBFC registration is a two-stage process: first incorporate a company, then apply to RBI for the Certificate of Registration (CoR).
1Step 1: Incorporate a Private Limited Company
Register a Pvt Ltd company under Companies Act with "Finance", "Investments", "Leasing", or "Capital" in the name.
2Step 2: Meet Net Owned Fund Requirement
Ensure paid-up equity capital of minimum ₹2 Crores. This must reflect in the company's balance sheet.
3Step 3: Prepare Business Plan & Policies
Draft 5-year business plan, risk management framework, Fair Practices Code, KYC/AML policy, and IT security policy.
4Step 4: Apply on RBI COSMOS Portal
Submit online application for NBFC registration on RBI's COSMOS portal with all required documents.
5Step 5: Physical Application to RBI Regional Office
Submit physical copies of the application and supporting documents to the concerned RBI regional office.
6Step 6: RBI Due Diligence & Inspection
RBI conducts background verification, financial assessment, and may conduct an inspection of proposed operations.
7Step 7: Certificate of Registration (CoR)
RBI issues Certificate of Registration upon satisfaction. NBFC can now commence financial operations.
NBFC registration is a lengthy process taking 90–180 days. RBI scrutinizes applications very carefully. Professional guidance is strongly recommended.
Documents Required
Company Documents
- Certificate of Incorporation
- MOA & AOA
- Audited financial statements
- Net Worth Certificate from CA
Director Documents
- PAN & Aadhaar of all directors
- Banker's report for each director
- CIBIL report
- Resume / qualifications of each director
Business Plan
- 5-year financial projections
- Business model and target market
- Risk management framework
- IT infrastructure details
Post-Registration Compliance
Statutory Audit
Annual statutory audit is mandatory. Auditor must submit specific NBFC compliance report.
RBI Returns & Reporting
File NBS-1 (annual), NBS-2 (annual), NBS-7 (quarterly), and other RBI-specific returns.
Prudential Norms
Maintain Capital Adequacy Ratio (15%), provision for NPA, and credit concentration limits.
Fair Practices Code
Adhere to RBI Fair Practices Code in all lending activities — interest rate disclosure, grievance redressal.
Common Questions
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