NBFC Registration in Delhi

NBFC Registration

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 engaged in the business of loans & advances, acquisition of shares / stocks / bonds / debentures / securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business.

The non Banking Financial Companies do not possess proper banking licenses like the commercial banks but (after getting NBFC License from RBI) offer a verity of very supportive and helpful services to public depositors borrowers and investors in some selected areas of Business.

An entity desirous of getting NBFC license from RBI must fulfill the following two norms:

  • It should be a company incorporated under Companies Act, 2013.res.
  • It should be a company having minimum net owned funds of INR 2 crores.

NBFC Registration Procedure

How to Get NBFC License from RBI?

NBFC Registration Procedure has been simplified by RBI by providing online platform to applicants. An existing company or a newly incorporated Company under companies Act 2013/1956 needs to go through the following Registration process to get a License from RBI

  • The applicant company incorporated under Companies Act 2013 is required to apply online. The application can be submitted online by accessing RBI’s secured website –www.cosmos.rbi.org.in
  • The company can download suitable application form from the above website, key in the data and upload the application form.
  • After filing the online Application the company has to submit the hard copy of the application form (indicating the online Company Application Reference Number, along with the supporting documents, to the concerned Regional Office of RBI.
  • The company can then check the status of the application from the above mentioned secure address, by keying in the acknowledgement number.
  • The license will be granted only after vigilant inspection of the application and documents attached with it.

Documents Required for NBFC Registration

The detailed Checklist of documents for registration of an NBFC (getting license from RBI) are tabled below :-

NBFC Registration and Regulations

All activities transactions and working of the NBFCs in India are regulated supervised and controlled by RBI Act 1934 and regulations and provisions as provided in the Chapter III B of RBI Act 1934.

However, in terms of the powers given to the Reserve Bank, to obviate dual regulation, certain categories of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz.

  • Venture Capital Fund/Merchant Banking companies
  • Stock broking companies registered with SEBI,
  • Insurance Company holding a valid Certificate of Registration issued by IRDA,
  • Nidhi companies as notified under Section 620A of the Companies Act, 1956,
  • Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982,
  • Housing Finance Companies regulated by National Housing Bank

SR. No. Particulars of Documents required for NBFC registration.
1 Certified copy of Certificate of Incorporation.
2 Extract of the main object clause in the MOA clearly depicting the financial business.
3 For companies already in existence, the Audited balance sheet and Profit & Loss account along with directors & auditors report or for the entire period the company is in  existence, or for last three years, whichever is less,
4 Board resolution stating that:
  • The company is not carrying on any NBFC activity and will not commence the same before getting registration from RBI
  • The UIBs in the group where the director holds substantial interest or otherwise has not accepted any public deposit in the past /does not hold any public deposit as on the date and will not accept the same in future
  • The company has not accepted public funds in the past/does not hold any public fund as on the date and will not accept the same in the future without the approval of Reserve Bank of India
  • The company has not accepted public funds in the past/does not hold any public fund as on the date and will not accept the same in the future without the approval of Reserve Bank of India
  • The company does not have any customer interface as on date and will not have any customer interface in the future without the approval of RBI
5 Copy of Director’s experience certificate in the Financial Services Sector (including Banking Sector).s
6 Bankers report depicting details of deposits and loans balances as on the date of application and the conduct of the account.