Looking for Registering an NBFC with RBI – A step by step process

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Executive Summary – This is a simple step by step guide for all of those looking for Non-Banking Financial Company (NBFC) registration and license from Reserve Bank of India (RBI). The guide ...

Definition:

Non-Banking Financial Company (NBFC) is a financial institution upon registration are allowed to offer financial products and services to customers. NBFC is primarily concerned with the business of loans and advances, acquisition of shares, finance leasing, hire-purchase, chit fund, etc. It is important to note that an NBFC is different from bank in ways like an NBFC cannot accept demand deposits, cannot issue cheques drawn on itself and its depositors do not get a deposit insurance and credit guarantee coverage.

Category of NBFCs:

NBFC in India can be basically categorized into (a) Deposit accepting NBFCs, (b) Non-deposit accepting NBFCs. Further, on the basis of activities, they can be further classified as below:

  • Investment & Credit Company (ICC)
  • Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI)
  • Non-Banking Financial Company – Factors (NBFC-Factors)
  • Infrastructure Finance Company (IFC)
  • Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC)
  • Housing Finance Companies (HFCs)
  • Asset Finance Company (AFC)
  • Core Investment Companies (CICs)
  • Non-Operative Financial Holding Company (NOFHC)
  • Mortgage Guarantee Companies (MGC)
  • Peer to Peer Lending Platform
  • Account Aggregator
  • Certain Exclusions: