Pre-requisites for NBFC Registration | ca rajput jain

Pre-Requirements for NBFC Registration

The basic pre-requisites for NBFC registration are given below:

• targeting the untouched segment
• high level business plan
• capital test
• Profile of Promoters
• area of ​​operation

Functions and Role of NBFCs

• The functions and mechanisms of NBFCs in India can be summarized as follows:
• developing sectors such as infrastructure, education and small and medium-sized enterprises;
• It facilitates the creation of wealth;
• to generate significant employment;
• To provide financial assistance to the economically weaker section of the society;
• in contributing to the economic development of the nation;
• contribute to the state treasury;
• It offers special loans;
• In terms of leadership for the development of the financial market.

Focus Areas of NBFCs

NBFCs have expanded dramatically, as indicated by their structure of asset development in the past:

• Customized Loan Products: The needs of one client are different from the needs of another client and the funding requirements are as follows;
• Flexible interest rates: In line with banking channels, NBFCs are committed to serve customers with competitive interest rates;
• quick disbursement of funds;
• Minimum document requirement;
• Going to serve the underprivileged;
• An effective mechanism for recovery.

Different Categories of RBI NBFC Registration

NBFCs require mandatory registration

• Asset Finance Company
• investment company
• loan company
• infrastructure finance company
• main investment company
• Infrastructure Debt Fund Non-Banking Financial Company
• Non-Banking Financial Company – Micro Finance Institution
• mortgage guarantee companies
• Non-Banking Financial Company – Factors
• NBFC Non-Operating Financial Holding Company (NOFHC).

The different types of RBI NBFC registration are given below:

• NBFC-Peer to Peer Lending (P2P)
• Core Investment Companies (CICs)
• NBFC-Account Aggregators
• Investment and Credit Company (ICC)
• NBFC-Microfinance Companies (MFIs)
• NBFC-Factors
• Infrastructure Finance Company (IFC)

one’s core business a non-banking financial company (NBFC) in India

• marketplace lending (digital lending);
• gold loan;
• NBFCs should maintain 50% of their assets as financial assets and 50% of their income should be generated from financial activity.
• investment in shares or mutual funds or debentures;
• Secured Loans (LAPs);
• unsecured personal and business loans;

Powers of RBI to Non-Banking Financial Company (NBFC):

The powers of RBI to Non-Banking Financial Company in India can be understood as follows:

• Inspects and monitors non-banking financial companies to verify whether they comply with the conditions of the RBI Act, 1935;
• It helps in regulating the registration process for NBFCs;
• lays down guidelines for police and issues to non-banking financial companies;
• It penalizes the non-banking financial company for violating the rules of the RBI Act, which may result in the cancellation or suspension of the non-banking financial company.

Compliance under Non-Banking Financial Company after RBI approval:

After a lump sum NBFC registration, all non-deposit taking NBFCs will be responsible for maintaining certain annual compliances as detailed below:

• Income Tax Return and GST Return;
• maintenance of proper accounts;
• All such compliances as may be in place from time to time.
• Requirement to file NBS-9 on online RBI portal i.e. Cosmos;
• Timely compliance and meets while maintaining 50:50 PBC norms
• ROC filings like Annual Return, Balance Sheet, Profit and Loss Account, etc.;
• Appointment of Statutory Auditor;
• Adopt Fair Practices Code prescribed by RBI and NBFCs should also adopt prudential norms prescribed by RBI.

Registration for NBFCs should be as per the guidelines prescribed by the auditor. Contact professionals at www.carajput.com for professional help and trained expertise

Non-Banking Financial Companies Compliance

NBFC – Annual Complaints

NBFC – Half Yearly Compliance

NBFC – Quarterly Compliance

NBFC – Monthly Compliance

RBI Update:-

• reserve Bank of India It directed credit information companies (CICs) on Thursday to provide completely free credit reports to individuals whose credit scores are with the agency, with effect from January 1.
• It came with a discussion paper on peer-to-peer lending (P2P), seeking to regulate the rapidly emerging crowdfunding platform as the new financing model has assumed so important it cannot be ignored. Is.
• Will be regulated by all peer-to-peer lending (P2P) platforms Reserve Bank of India (RBI)According to the notification of the Government of India issued on Wednesday.
• The gazette notification said that all P2P lending platforms would be treated as non-banking financial companies (NBFCs) and would be brought under the purview of the banking regulator.

Frequently Asked Questions on Compliance of NBFCs

Q1- What is the net worth limit of NBFCs for starting business?

Ans- The net worth limit of NBFCs for starting a business is Rs. 2 crore

Q2- Who needs to report NFBC complaints to NFBC?

Ans- NBFCs need to report to RBI about compliance.

Q3-Do all NBFCs require registration to start business?

Ans.- No, some companies are not required to be registered.

Our NBFC Registration Package

Package include: –

• Establishment of company for NBFC registration purpose.
• Apex/Top-Level NBFC Business Plan
• Application preparation and review
• Application for COR reviewable by expert
• Contains advice about the latest fintech models
• End-to-end support and response to RBI’s queries
• Legal consultation to obtain approval from the authority.

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