{"id":3823,"date":"2019-03-06T14:14:30","date_gmt":"2019-03-06T14:14:30","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=3823"},"modified":"2021-04-08T17:23:02","modified_gmt":"2021-04-08T11:53:02","slug":"nbfc-annual-compliance-checklist","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/","title":{"rendered":"What are NBFC Annual Compliance Checklist"},"content":{"rendered":"\n<p class=\"has-drop-cap\">NBFC is one of the most common forms of financial institutions in India which contributes an outstanding percentage of GDP rise to the country\u2019s economy. As important as it is to&nbsp;obtain<strong> <a href=\"https:\/\/swaritadvisors.com\/nbfc-registration\" class=\"text-primary\">NBFC license<\/a><\/strong>&nbsp;for commencing a Non-Banking Financial Company, it is equally important to follow-up with the NBFC annual compliance checklist.<\/p>\n\n\n\n<p>However, in case, you don\u2019t follow up with the <strong><a href=\"https:\/\/swaritadvisors.com\/nbfc-compliance\" class=\"text-primary\">NBFC compliance<\/a><\/strong>; you would have to pay hefty penalties. Even it could lead to the company\u2019s closure or <strong><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-appeal-for-nbfc-license-cancellation\/\" class=\"text-primary\">cancellation of NBFC license<\/a><\/strong>.<\/p>\n\n\n\n<p>Therefore, if you\u2019re\noperating an NBFC, then make sure that you have the valid NBFC annual\ncompliance checklist. The checklist will help you to file returns on time.\nHence, we have brought a complete list of NBFC annual compliance so that you\ncan save yourself from penalties and file returns before the due date.<\/p>\n\n\n\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-6a247a3e8e240\" 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-6a247a3e8e240\"  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\/nbfc-annual-compliance-checklist\/#Definition_of_NBFC_Annual_compliance_checklist\" title=\"Definition of NBFC Annual compliance checklist\">Definition of NBFC Annual compliance checklist<\/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\/nbfc-annual-compliance-checklist\/#Types_of_NBFCs_on_the_basis_of_activities_and_liabilities\" title=\"Types of NBFCs on the basis of activities and liabilities\">Types of NBFCs on the basis of activities and liabilities<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Based_on_Liabilities\" title=\"Based on Liabilities\">Based on Liabilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Based_on_Activities\" title=\"Based on Activities\">Based on Activities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Essential_NBFC_Compliance_Checklist_for_Non-Deposit_Deposit-taking_Company\" title=\"Essential\nNBFC Compliance Checklist for Non-Deposit &amp; Deposit-taking Company\">Essential\nNBFC Compliance Checklist for Non-Deposit &amp; Deposit-taking Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Returns_and_Compliances_of_NBFCs_registered_with_RBI\" title=\"Returns\nand Compliances of NBFCs registered with RBI\">Returns\nand Compliances of NBFCs registered with RBI<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Deposit-taking_NBFCs_are_required_to_submit_the_following_returns\" title=\"Deposit-taking\nNBFCs are required to submit the following returns:\">Deposit-taking\nNBFCs are required to submit the following returns:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#NBFCs-ND-SI_is_required_to_submit_the_following_returns\" title=\"NBFCs-ND-SI\nis required to submit the following returns:\">NBFCs-ND-SI\nis required to submit the following returns:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Quarterly_return_on_important_financial_parameters_of_non-deposit_taking_NBFCs_holding_assets_of_above_Rs_50_crores_and_higher_but_below_Rs_100_crores\" title=\"Quarterly return on important financial parameters of\nnon-deposit taking NBFCs holding assets of above Rs. 50 crores and higher but\nbelow Rs. 100 crores.\">Quarterly return on important financial parameters of\nnon-deposit taking NBFCs holding assets of above Rs. 50 crores and higher but\nbelow Rs. 100 crores.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Additional_Compliances\" title=\"Additional Compliances\">Additional Compliances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#RBI_Intimations_Applicable_on_NBFCs\" title=\"RBI Intimations\nApplicable on NBFCs\">RBI Intimations\nApplicable on NBFCs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Prudential_Regulations\" title=\"Prudential Regulations\n\">Prudential Regulations\n<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/nbfc-annual-compliance-checklist\/#Take_away\" title=\"Take away\">Take away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_NBFC_Annual_compliance_checklist\"><\/span>Definition of NBFC Annual compliance checklist<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFC annual compliance checklist\ndefines the due date of the NBFC compliances and returns that every NBFC has to\nfile. The list is made as per the guidelines and master directions of RBI.<\/p>\n\n\n\n<p>As per the Non-Banking Financial\nCompany Returns (Reserve Bank) Directions, 2016, every Non-Banking Financial\nCompany needs to comply with the compliances described later in this blog.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_NBFCs_on_the_basis_of_activities_and_liabilities\"><\/span>Types of NBFCs on the basis of activities and liabilities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"768\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Types-of-NBFCs-1024x768.png\" alt=\"Types of NBFC\" class=\"wp-image-12137\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Types-of-NBFCs-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Types-of-NBFCs-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Types-of-NBFCs-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Types-of-NBFCs.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p><em><strong>The types of NBFC on the basis of Activities and Liabilities are as follows: <\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Based_on_Liabilities\"><\/span>Based on Liabilities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol><li>Deposit Accepting NBFCs;<\/li><li>Non-Deposit Accepting NBFCs;<\/li><li>Systematically\nImportant (NBFC-ND-SI);<\/li><li>Other\nNon-Deposit Holding Companies;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Based_on_Activities\"><\/span>Based on Activities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol><li>Infrastructure Finance Company (IFC);<\/li><li>Investment and Credit Company (ICC);<\/li><li>Systemically Important Core Investment Company (CIC);<\/li><li>NBFC- Non-Operative Financial Holding Company (NOFHC);<\/li><li>Mortgage Guarantee Companies;<\/li><li>NBFC-Factors;<\/li><li>NBFC- Microfinance Companies (MFIs);<\/li><li>Infrastructure Debt Fund Non Banking Financial Company\n(IDF-NBFC)<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Essential_NBFC_Compliance_Checklist_for_Non-Deposit_Deposit-taking_Company\"><\/span><strong>Essential\nNBFC Compliance Checklist for Non-Deposit &amp; Deposit-taking Company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Below we have made an NBFC annual\ncompliance checklist for both Non-Deposit and Deposit-taking Company. Have a\nlook below:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>S. No<\/strong><strong><\/strong>\n  <\/td><td>\n  <strong>Particulars<\/strong><strong><\/strong>\n  <\/td><td>\n  <strong>Time Limit<\/strong><strong><\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>Annual Compliances&nbsp;<\/strong>\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  <strong>1.<\/strong>\n  <\/td><td>\n  Unaudited\n  March Monthly return\/NBS-7\n  <\/td><td>\n  On\n  or before 30<sup>th<\/sup>&nbsp;June\n  <\/td><\/tr><tr><td>\n  <strong>2.<\/strong>\n  <\/td><td>\n  Statutory\n  Auditors certificate on Income &amp; Assets\n  <\/td><td>\n  On\n  or before 30<sup>th<\/sup>&nbsp;June\n  <\/td><\/tr><tr><td>\n  <strong>3.<\/strong>\n  <\/td><td>\n  Information\n  about Companies having FDI\/Foreign Funds\n  <\/td><td>\n  On\n  or before 30<sup>th<\/sup>&nbsp;June\n  <\/td><\/tr><tr><td>\n  <strong>4.<\/strong>\n  <\/td><td>\n  Audited\n  March Monthly return\/NBS-7\n  <\/td><td>\n  Upon\n  completion\n  <\/td><\/tr><tr><td>\n  <strong>5.<\/strong>\n  <\/td><td>\n  File\n  audited annual balance sheet and P&amp;L Account\n  <\/td><td>\n  One\n  month from the date of signoff\n  <\/td><\/tr><tr><td>\n  <strong>6.<\/strong>\n  <\/td><td>\n  Resolution\n  of Non-Acceptance of Public Deposit\n  <\/td><td>\n  Before\n  the commencement of the new Financial year\n  <\/td><\/tr><tr><td>\n  <strong>7.<\/strong>\n  <\/td><td>\n  Declaration\n  of Auditors to Act as Auditors of the Company\n  <\/td><td>\n  Annual\n  basis\n  <\/td><\/tr><tr><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>Monthly Compliance<\/strong>\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  <strong>1.<\/strong>\n  <\/td><td>\n  Monthly\n  Return\n  <\/td><td>\n  By\n  7<sup>th<\/sup>&nbsp;of every month\n  <\/td><\/tr><tr><td>\n  <strong>2.<\/strong>\n  <\/td><td>\n  Upload Monthly Return\n  <\/td><td>\n  By 7<sup>th<\/sup>&nbsp;of every month\n  <\/td><\/tr><tr><td><\/td><td>\n  <strong>Periodical Compliances<\/strong>\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  <strong>1.<\/strong>\n  <\/td><td>\n  Appointment\n  of Director (Annexure III)\n  <\/td><td>\n  Within\n  30 days of appointment\n  <\/td><\/tr><tr><td>\n  <strong>2.<\/strong>\n  <\/td><td>\n  Resignation\n  of Director (DIR-12 + Challan report)\n  <\/td><td>\n  Within\n  30 days of appointment\n  <\/td><\/tr><tr><td>\n  <strong>3.<\/strong>\n  <\/td><td>\n  Adoption\n  of any notification in the ensuing Board Meeting and filing the certified\n  copy with RBI\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Returns_and_Compliances_of_NBFCs_registered_with_RBI\"><\/span><strong>Returns\nand Compliances of NBFCs registered with RBI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With reference to&nbsp;<strong>Master Direction<\/strong><a href=\"https:\/\/m.rbi.org.in\/Scripts\/BS_ViewMasDirections.aspx?id=10586\">[1]<\/a> &nbsp;\u2013 NBFC-NDs-SI and NBFC-SI deposit-taking company must file the following returns as described below:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deposit-taking_NBFCs_are_required_to_submit_the_following_returns\"><\/span><strong>Deposit-taking\nNBFCs are required to submit the following returns:<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"768\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Returns-filed-by-a-Deposit-Taking-NBFC-1024x768.png\" alt=\"list of Deposit-taking NBFCs returns\" class=\"wp-image-12138\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Returns-filed-by-a-Deposit-Taking-NBFC-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Returns-filed-by-a-Deposit-Taking-NBFC-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Returns-filed-by-a-Deposit-Taking-NBFC-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Returns-filed-by-a-Deposit-Taking-NBFC.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<ol><li><strong>NBS-1 Return:<\/strong>&nbsp;Every NBFC that accepts or holds public\ndeposits should submit NBS-1 return on a quarterly basis. The purpose of filing\nthis return is to capture financial details such as Profit and Loss account,\nComponents of Assets and Liabilities, Exposure to sensitive sectors, etc.<\/li><li><strong>NBS-2 Return:<\/strong>&nbsp;NBFC\nwhich accepts public deposits are required to submit a quarterly return on\nPrudential Norms. The intent behind filing this return is to capture\ncompliances related to several prudential norms such as Asset Classification,\nCapital Adequacy, NOF, Provisioning, etc.<\/li><li><strong>NBS-3 Return:<\/strong>&nbsp;Again,\nit\u2019s a quarterly return that every deposit-taking NBFC needs to file on a\nquarterly basis. Besides, the objective behind introducing this return is to\ncapture information about Statutory Investments in the Liquid States. Moreover,\nthe statutory investments include Fixed Deposits in Schedules Commercial Bank,\nCentral or State Government Securities, etc.<\/li><li><strong>NBS-4 Return:<\/strong>&nbsp;It\u2019s\na kind of annual return of critical parameters. The return must be filed by a\nrejected company holding public deposits. Earlier, NBS-5 was filed. However,\nnow NBS-5 stands withdrawn as NBS-1 is filed quarterly. The objective of filing\nNBS-4 is to find the repayment status of the rejected NBFCs accepting public\ndeposits.<\/li><li><strong>NBS-6 Return:<\/strong>&nbsp;It\u2019s\na monthly return on exposure to capital market by NBFC taking deposits with\ntotal assets equal to or more than Rs. 100 crores.<\/li><li><strong>Half-Yearly ALM Returns<\/strong>&nbsp;by NBFC accepting public deposits of more than\nRs. 20 crores or asset size of above Rs.100 crores.<\/li><li><strong>Audited Balance Sheet and Auditor\u2019s\nReport<\/strong>&nbsp;by Non-Banking\nFinancial Companies accepting public deposits.<\/li><li><strong>Branch Information Return<\/strong>: It\u2019s a quarterly return that every NBFC which\naccepts or holds public deposits needs to submit.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NBFCs-ND-SI_is_required_to_submit_the_following_returns\"><\/span><strong>NBFCs-ND-SI\nis required to submit the following returns:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol><li><strong>NBS-7:<\/strong>&nbsp;It\u2019s a quarterly statement of capital funds, risk asset ratio, risk-weighted assets, etc., for NBFC-ND-SI. Therefore, you need to file it on a quarterly basis.<\/li><li><strong>Monthly returns on Necessary Financial Parameters of NBFCs-ND-SI<\/strong>&nbsp;must be submitted on a monthly basis.<\/li><li><strong>ALM returns<\/strong>: ALM (Asset-Liability Management) Returns refer to multiple returns that are supposed to be submitted by NBFCs-ND-SI at several intervals as described below:<ul><li>Statement of short term dynamic liquidity ALM [NBS-ALM1]: Monthly;<\/li><li>Structural liquidity in format ALM [NBS-ALM2] statement: Half Yearly;<\/li><li>Interest Rate Sensitivity in format ALM \u2013 [NBS-ALM3] statement: Half Yearly;<\/li><li>Assets Liability Mismatch [ALM-YRLY] statement: Annually.<\/li><\/ul><\/li><li><strong>Branch Information Return:<\/strong>&nbsp;Every NBFCs-ND-SI must submit the branch information return on a quarterly basis.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Quarterly_return_on_important_financial_parameters_of_non-deposit_taking_NBFCs_holding_assets_of_above_Rs_50_crores_and_higher_but_below_Rs_100_crores\"><\/span>Quarterly return on important financial parameters of\nnon-deposit taking NBFCs holding assets of above Rs. 50 crores and higher but\nbelow Rs. 100 crores.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Non-deposit taking NBFCs with asset\nsize between Rs. 50 crores and Rs. 100 crores are required to submit the basic\ndetails such as the name of the company, address, NOF, and profit\/loss during\nthe last three years quarterly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Additional_Compliances\"><\/span>Additional Compliances<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"768\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Additional-Compliances-1024x768.png\" alt=\"Additional Compliances of NBFC\" class=\"wp-image-12139\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Additional-Compliances-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Additional-Compliances-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Additional-Compliances-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Additional-Compliances.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Besides the compliances mentioned above, there are some other\ncompliances under the provisions of the Companies Act, 2013, that all the NBFCs\nPAN-India must follow, which are as follows:<\/p>\n\n\n\n<ol><li>ADT-1, Appointment of\nAuditor;<\/li><li>Maintenance of Books and Accounts;<\/li><li>Maintenance of Statutory Registers;<\/li><li>Preparation of the Financial Statements;<\/li><li>Convene Statutory Meetings;<\/li><li>Income Tax Returns (ITR) Filings;<\/li><li>AOC-4, Filing of Financial Statements;<\/li><li>MGT-7, Filing ROC (Registrar of Companies) Annual\nReturns;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RBI_Intimations_Applicable_on_NBFCs\"><\/span>RBI Intimations\nApplicable on NBFCs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"768\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/RBI-Intimations-Applicable-on-NBFCs-1024x768.png\" alt=\"RBI Intimations on NBFCs\" class=\"wp-image-12140\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/RBI-Intimations-Applicable-on-NBFCs-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/RBI-Intimations-Applicable-on-NBFCs-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/RBI-Intimations-Applicable-on-NBFCs-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/RBI-Intimations-Applicable-on-NBFCs.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>The compliances\nthat are applicable to every NBFC irrespective of the activities are as\nfollows: <\/p>\n\n\n\n<ol><li><strong>Filling of Annual Reports to RBI<\/strong>: It is compulsory for every NBFC (Non Banking Financial Institution) to submit its Annual Report within a period of 15 days, starting from the date of AGM (Annual General Meeting). Each financial institution should provide its Audited Balance Sheet, together with Audited P&amp;L (Profit and Loss) Statement passed by the company in its Board Meeting. The directors of the company also need to annex a copy of Board Report or Directors Report to the Apex Bank.<\/li><li><strong>SAC or Statutory Auditors Certificate<\/strong>: All the NBFCs having Registration PAN-India needs to collect a certificate from Statutory Auditors. This certificate will act as a declaration that the said NBFC or Non Banking Financial Company is carrying out the functions of NBFC and is incorporated under section 45-IA of the RBI, Act, 1934. Further, the due date to file this certificate is one month from the date of finalization of the Balance Sheet. However, the period shall not exceed the date of 31<sup>st<\/sup> December.<\/li><li><strong>Annual Returns<\/strong>: Every miscellaneous NBFC that is accepting or holding deposits must submit an annual return containing information in the format prescribed by the Apex Bank of India.<\/li><li><strong>Change in Principal Officers and Directors<\/strong>: In case an NBFC decides to change its Principal officers or Directors, and then it is compulsory for it to inform the RBI with a time span 1 month, starting from the date of the event. Further, it is compulsory for every non banking financial institution to submit a written statement, including the details as follows:<ul><li>Name and the Official Designation of its Principal Officers; <\/li><li>Name and Residential Address of the Directors of the Company;<\/li><\/ul><\/li><li>Specimen Signature of the Principal Officer who is authorised to sign on behalf of the Company<\/li><\/ol>\n\n\n\n<p>Further, any change or amendment made by the Apex Bank in\nthe guidelines provided above shall be informed by the Reserve Bank of India\nwith 1 month from the incidence of such change or amendment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prudential_Regulations\"><\/span>Prudential Regulations\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"768\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Prudential-Regulations-1024x768.png\" alt=\"Prudential NBFC Regulations \" class=\"wp-image-12141\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Prudential-Regulations-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Prudential-Regulations-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Prudential-Regulations-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Prudential-Regulations.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Besides the above mentioned RBI compliance for NBFCs having registration\nPAN-India, there are some other regulations mentioned under Chapter IV of the\nMaster Director issued by RBI. Such regulations are known as Prudential Regulations.\nIt is again mandatory got every NBFC to abide by the regulations as follows: <\/p>\n\n\n\n<ol><li><strong>Leverage Ratio<\/strong>: All the NBFCs other than NBFC-IFC (Infrastructure Finance Company) and NBFC-MFI (<strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/microfinance-company-registration\">Micro Finance Institution<\/a><\/strong>) must maintain a leverage ratio up to 7 at any course of action.<\/li><li><strong>Accounting Investments<\/strong>: It is mandatory for the BOD (Board of Directors) of the NBFCs to frame Investment Policies for the company and implement them as well. For example, the criterion to categorise investments into long term and current investments.<\/li><li><strong>Frame Policies for Call or Demand Loans<\/strong>: The BOD (Board of Directors) of a pertinent NBFC that intends to call or demand loans must frame a policy that will be implemented by the company.<\/li><li><strong>Classification of Assets<\/strong>: All the NBFCs pertinent under chapter IV of the RBI Master Direction must classify their assets in the classes as follows:<ul><li>Standard Assets;<\/li><li>Sub-Standard Assets;<\/li><li>Doubtful Assets; <\/li><li>Loss Assets<\/li><\/ul><\/li><li><strong>Provisioning of the Standard Asset<\/strong>: Every pertinent NBFC is required to make provisions regarding the standard assets at 0.25% of the total outstanding.<\/li><li><strong>Multiple NBFCs<\/strong>: All the NBFCs relevant under chapter IV of the RBI Master Direction will be jointly aggregated for the purpose of checking the threshold of Rs 500 crores asset size.<\/li><li><strong>Disclosures in the Company\u2019s Balance Sheet<\/strong>: Every NBFC relevant under chapter IV of the RBI Master Direction will have separate disclosures provisions for bad or doubtful debts and depreciation in Investments. <\/li><li><strong>A loan taken against the shares of the Company are Prohibited<\/strong>: No BFCs pertinent under chapter IV of the RBI Master Direction can either take or lend credit against its own shares.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_away\"><\/span>Take away<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Therefore, any company willing to carry on the business of non-banking financial institution are imperatively required to obtain an NBFC registration in India with RBI. Moreover, according to <strong>Section 45-IA<\/strong> of the RBI Act, 1934, the applicant must have a net owned fund of Rs. 2 crores and it must obtain a certificate of registration from the bank.<\/p>\n\n\n\n<p>In addition, if you have obtained the license, you\nare strictly required to abide\nby the NBFC Post Registration Compliances as described above.\nFurthermore, the consequences of non-compliance will lead to a hefty penalty\nand even shutting down the company.<\/p>\n\n\n\n<p>However,\nstarting an NBFC can seem complex due to the intricate and complicated\nlicensing requirements. Our experts at Swarit Advisors will provide end-to-end\nNBFC Registration solutions. We rank high in NBFC Registration and Advisory\nServices.<\/p>\n\n\n\n<div class=\"read\"><p><b>Read, Also:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-takeover-nbfc\/\">How to Takeover NBFC<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>NBFC is one of the most common forms of financial institutions in India which contributes an outstanding percentage of GDP rise to the country\u2019s economy. As important as it is to&nbsp;obtain NBFC license&nbsp;for commencing a Non-Banking Financial Company, it is equally important to follow-up with the NBFC annual compliance checklist. However, in case, you don\u2019t [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":3829,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[380,89],"tags":[425],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3823"}],"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\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=3823"}],"version-history":[{"count":66,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3823\/revisions"}],"predecessor-version":[{"id":18704,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3823\/revisions\/18704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/3829"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=3823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=3823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=3823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}