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What is Non-Banking Financial Company – NBFC & Why do We Need it?

What is OPC Registration meaning
Monisha Chaudhary
| Updated: Jul 10, 2018 | Category: NBFC

NBFC is a financial institution that provides services similar to that of banking and another lending service without meeting with the legal definitions of a bank. These NBFC institutions are generally not allowed to take any deposits from the public which is likely to keep them out of the main league of the scope for traditionally required oversight that is under the non-banking financial company regulations.

The basic banking services such as the loans and facilities for credit, retirement plans, marketing, underwriting and activities of a merger are offered by NBFCs. Each NBFC ever willing to get registered must obtain a commencement of business certificate from the Reserve Bank of India. This has been identified under the section 45 I (a) of the reserve bank of India act.

An NBFC Registration can be issued and obtained within the time period of 90 days to 120 days. The commercial gap is slowly filling up by the non-banking financial companies to cater the financial needs for the organized and unorganized sections of the populations. There is an opportunity for the non-banking financial companies to enlarge its presence in the financial markets.

What Are The Types of NBFC in India?

The non-banking financial companies can be categorized as followed: –

  • Asset Finance Company
  • Investment Company
  • Loan Company
  • Infrastructure Finance Company
  • Core Investment Company
  • Micro Finance Company
  • Mortgage Guarantee Company
  • Housing Finance Company

By the virtue of the deposits that a non-banking financial company holds, these institutions can further be classified into more than two categories precisely: –

  • Deposit accepting NBFCs
  • Non-Deposit accepting NBFCs

By virtue of the size of a non-banking financial company, again it can be further classified into another two categories that are mentioned below: –

  • Systematically Important NBFCs
  • Non-Deposit Holding NBFCs

Follow the Procedure to Apply For NBFC Registration

Here in our blog, we provide the basic steps by following which you can easily go through the online NBFC registration process. If you are an entity that desires to commence a business of non-banking financial company then you had a need to go through following steps of NBFC Registration by applying to reserve bank of India.

  • First of all, keep in mind that you are to fulfil the following 2 norms –
  1. It must be a company that is being registered under the company’s act of 2013.
  2. It must be a company that has minimum net owned funds of Rs 2 crore.
  • The online application is available on the website of reserve bank of India (COSMOS).
  • Submit the hard copies of NBFC Registration application along with attachments of required documents that are listed by the reserve bank of India itself. All this is to be submitted to the reserve bank of India office.
  • NBFC Registration certificate will only be granted after a vigilant inspection and review of your application and documents that you have provided as attachment to it.
  • Once all have been satisfactory from your side, the reserve bank of India will then grant you an NBFC Registration certificate. You are now done after allowed commence your business through non-banking financial company.

Online NBFC Registration is not a difficult task to do but your documents must be completely prepared without any fault. If you want to avail the best expert consultation then feel free to contact the leading online legal service provider agency i.e. Swarit Advisors. We have an experience of years to handle the issues and queries related to any online registration process. You can anytime call us or drop us an email so that we can help you immediately with the best professionals at your end.

Monisha Chaudhary

Experienced Legal and Advisory professional with 5+ years of workings in the field of compliance, statutory governance and licensing, RBI, IRDAI matters etc.

Top rated CA Service provider

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