Non-Banking Financial Company

Non Banking Financial Company (NBFC) Registration Online

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Non Banking Financial Company (NBFC) Registration Online - Process, Procedure, Document Required, Fees, Eligibility, Duration

A non-banking financial company is a company that can be registered under the Companies Act, 1956. It is mainly needed to be engaged in the business of advances and loans, acquisition of stocks / shares / debentures / bonds / securities that are issued by local authority or government or some other marketable securities.

Company Registered as Non-Banking Financial Company under the Companies Act, 1956 is based on the business that is engaging with the business of loans, acquisition of shares, debentures, bonds, or stocks that are issued by the Government or the local authority such as the nature, leasing, insurance business, or even the chit business. This company does not require to be an institution having the principal business based on the agriculture activity, sale of any goods, industrial activity, or any others. Normally, the Non-Banking Financial institution is the company that mainly has the principal business receiving the deposit based on the arrangement or scheme in the unique installments or lump sum.

Non-Banking Financial companies or NBFC are mainly called the nonbank financial institutions so that the financial institutions mainly provide you more banking services without any kind of banking license. Institutions will not be allowed to take the traditional demand deposits, which are mainly available with the funds that include the saving accounts even from the public. These limitations are mainly required for keeping it outside the scope of the conventional oversight from the state and federal financial regulators. Credence Corporate Solutions Pvt. Ltd is the leading in providing the complete solution for acquiring legal registration.

Non-Banking Financial Company mainly falls under the complete oversight of the Consumer Protection Act. These are mainly described as the unique attribute with companies that are predominantly engaged in financial activity. Based on statics, more than 85% of consolidated annual gross revenues are being conciliated assets with the financial activity.

When the NBFCs are included with the investment in the money market funds, banks, mortgage lenders, private equity funds, or ay others. Normally, the asset size would be audited in the balance sheet so that they are considered as the systemically important NBFCs. Rationale enabled with the classification are activities based on the NBFCs for easily bearing financial stability along with the best economy.

Housing Finance Companies or Stock Exchanges mainly NBFCs so that they are exempt from the requirement to the registration based on the Section 45-IA of RBI Act, 1934. It would be mainly subject to certain conditions. The Housing Finance Companies would be mainly regulated based on National Housing Bank, brokers/sub-brokers, Venture Capital Fund Company, or any others mainly regulated based on the Securities and Exchange Board of India.

We at Credence Corporate Solutions are ready to provide you with a complete solution based on acquiring the certification for your company. Many numbers of Insurance companies are also regulated by the Insurance Regulatory and Development Authority. Respective State Governments and Nidhis Companies are also regulating the Chit Fund Companies. Normally, the companies that are not a financial business are given a specific exemption from Reserve Bank so that the regulator would be changing based on numerous aspects.

Under Section 45 I(f)(iii) of the RBI Act, 1934, these are mainly mentioned with the Mortgage Guarantee Companies notified based on Non-Banking Financial Companies. Apart from these, there are also Crore investment companies are also available, which would be enabled with more regulatory attributes. Companies investing with the 100 crores and above but do not get the accessing public funds would be exempted from the registration with RBI.

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Non Banking Financial Company (NBFC) Registration Online Frequently Asked Questions

Non-Banking Financial Company or institution mainly abides by the principle of business for receiving the deposit based on the scheme or arrangement in the lump sum. These mainly provide the various installments on the contribution in various aspects.
NBFCs normally lend or make the investment so that they mainly have the different activities above the banks. NBFC does accept the demand deposits, and NBFCs do not form any part of the payment or cause the settlements that could not be issued as a cheque.
NBFCs are categorized based on the type of liabilities with the Deposit and Non-Deposit that are mainly based on NBFC. Non-deposit creating the size with systemically important aspects.
1. it should be a company registered under Section 3 of the companies Act, 1956 2. It should have a minimum net owned fund of INR 200 lakh. (The minimum net owned fund (NOF) required for specialized NBFCs like NBFC-MFIs, NBFC-Factors, CICs is indicated separately in the FAQs on specialized NBFCs)
The application can be submitted online at https://cosmos.rbi.org.in . The company can click on “CLICK” for Company Registration. The company can then download suitable application form (i.e. NBFC or SC/RC) from the above website, fill in the data and upload the application form. The company would then get a Company Application Reference Number for the CoR application filed on-line. Thereafter, the company has to submit the hard copy of the application form and the supporting documents, to the concerned Regional Office.
The Asset Finance Company or AFC is the company carrying the principal business along with financing physical assets and supporting productivity.
The maximum interest rate of NBFC paying the deposit must not exceed 12.5%. Normally, the Reserve Bank alters interest rates based on the macro-economic environment.
Different types of NBFCs are as follows: I. Asset Finance Company (AFC) II. Investment Company (IC) III. Loan Company (LC) IV. Infrastructure Finance Company (IFC) V. Systemically Important Core Investment Company (CIC-ND-SI) VI. Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC) VII. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI) VIII. Non-Banking Financial Company – Factors (NBFC-Factors) IX. Mortgage Guarantee Companies (MGC) X. NBFC- Non-Operative Financial Holding Company (NOFHC)
No. the Circular will not be applicable on restructured accounts
Yes, nomination facility is available to the depositors of NBFCs. The Rules for nomination facility are provided for in section 45QB of the Reserve Bank of India Act, 1934.
No. Proprietorship and partnership concerns are un-incorporated bodies. Hence they are prohibited under the RBI Act 1934 from accepting public deposits.
Some of the important regulations relating to acceptance of deposits by NBFCs are as under: i. The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand. ii. NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 12.5 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests. iii. NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors. iv. NBFCs should have minimum investment grade credit rating. v. The deposits with NBFCs are not insured. vi. The repayment of deposits by NBFCs is not guaranteed by RBI. vii. Certain mandatory disclosures are to be made about the company in the Application Form issued by the company soliciting deposits.
No. The Reserve Bank does not guarantee repayment of deposits by NBFCs even though they may be authorized to collect deposits.
Yes, a depositor can approach any or all of the redressal authorities i.e consumer forum, court or CLB

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