{"id":2350,"date":"2018-05-21T09:54:54","date_gmt":"2018-05-21T04:24:54","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=2350"},"modified":"2022-09-28T14:53:48","modified_gmt":"2022-09-28T09:23:48","slug":"why-nbfc-registration-is-required-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/why-nbfc-registration-is-required-in-india\/","title":{"rendered":"Why NBFC Registration is Required in India?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a4a7876632\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a4a7876632\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/why-nbfc-registration-is-required-in-india\/#What_is_NBFC\" title=\"What is NBFC?\">What is NBFC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/why-nbfc-registration-is-required-in-india\/#When_can_you_not_do_an_NBFC_Registration\" title=\"When can you not do an NBFC Registration?\">When can you not do an NBFC Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/why-nbfc-registration-is-required-in-india\/#What_are_the_Basic_Requirements_of_NBFC_Registration_with_RBI\" title=\"What are the Basic Requirements of NBFC Registration with RBI?\">What are the Basic Requirements of NBFC Registration with RBI?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_NBFC\"><\/span>What is NBFC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-drop-cap\">NBFC stands for a non \u2013 banking financial company, it\u2019s a company registered under the \u201ccompanies act 2013\u201d. It involves the principal business of lending the investments in- In this article we will discuss NBFC registration is required in India.<\/p>\n\n\n\n<ul><li>Stocks<\/li><li>Shares<\/li><li>Bonds<\/li><li>Debentures<\/li><li>Or leasing<\/li><li>Or insurances<\/li><li>Hire purchases<\/li><li>Insurance businesses<\/li><li>Involvement in chit business on a bigger scale or something involving getting deposits under any agreement or a scheme.<\/li><\/ul>\n\n\n\n<p>NBFC is under RBI preview and this article shall help you to understand about <strong><a href=\"https:\/\/swaritadvisors.com\/nbfc-registration\" class=\"text-primary\">NBFC registration<\/a><\/strong> in India and Its rules and regulations governing the operations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_can_you_not_do_an_NBFC_Registration\"><\/span>When can you not do an NBFC Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFC is a company that is registered under the company\u2019s act 2013 as stated above, and with the activities similar to the banking system. However, there are few differences, which are as followed:-<\/p>\n\n\n\n<ul><li>NBFC unlike a regular bank, can\u2019t accept demand deposits.<\/li><li>NBFC also can\u2019t draw a cheque issued on itself.<\/li><li>The bank deposits are insured by the credit guarantee corporation and \/or deposit insurance.<\/li><\/ul>\n\n\n\n<p>An NBFC just like any other regular bank apart from the above differences mentioned engage in other businesses like making loans, trading of shares, stocks, bonds, securities and debentures etc. and other mentioned in the 1<sup>st<\/sup> list of this article but doesn\u2019t involve into an institution that has principal business with respect to agriculture activity or industrial activity and purchase and sale of any products that\u2019s other than security, also provide services and sales\/purchase or construction of non motile property. Also, the company involving principal business of receiving deposits and scheme or arrangement in the installments by the way of contribution in any manner is also a form of NFBC.<\/p>\n\n\n\n<p>NBFC is categorized in taking deposits and not taking of the deposits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Basic_Requirements_of_NBFC_Registration_with_RBI\"><\/span>What are the Basic Requirements of NBFC Registration with RBI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>By the sec 45-IA of the RBI act 1934, none of the companies in India are allowed to carry on any business of NBFC institution without the getting a certificate of NBFC Registration&nbsp;and having net owned funds of Rs 2crores. The NBFC registration is required as it incorporates sec-3 of companies act 2013 and having at least a minimum of net owned funds minus the amount that\u2019s invested in shares of subsidiaries, companies in same group and all other NBFCs, outstanding loans and the book value of debentures and bonds, the advances that include hire purchases and financial lease made for deposits and subsidiaries and companies of the same group.<\/p>\n\n\n\n<p>The owned funds is an aggregated paid-up capital of equity, the preference shares that are compulsory to convert to equity, the free reserves and balance in the shares premium account and monitory or capital reserves that represent the surplus that arises out of the <strong><a href=\"https:\/\/swaritadvisors.com\/nbfc-for-sale\" class=\"text-primary\">NBFC sales<\/a><\/strong> and proceeds of the assets. This is excluding the reserves generated by the revaluation of assets which is after deduction of collective accumulation balance of loss, deferred revenue expenditure and other assets.<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/what-is-nbfc-registration-in-india\/\">What is NBFC Registration in India?<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is NBFC? NBFC stands for a non \u2013 banking financial company, it\u2019s a company registered under the \u201ccompanies act 2013\u201d. It involves the principal business of lending the investments in- In this article we will discuss NBFC registration is required in India. Stocks Shares Bonds Debentures Or leasing Or insurances Hire purchases Insurance businesses [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":2352,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[89],"tags":[986],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/2350"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=2350"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/2350\/revisions"}],"predecessor-version":[{"id":19057,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/2350\/revisions\/19057"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/2352"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=2350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=2350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=2350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}