Non-Banking Financial Companies (NBFCs) are a critical pillar of India’s financial system — providing credit, investments, and financial services to segments that banks often cannot reach. From consumer loans and vehicle finance to SME lending, microfinance, and infrastructure funding, NBFCs drive financial inclusion and economic growth.
Setting up and running an NBFC in India is a highly regulated affair. It requires prior approval from the Reserve Bank of India (RBI), minimum Net Owned Funds (NOF) of ₹10 crore (recently revised), and strict ongoing compliance under RBI Master Directions, the Companies Act, and the Scale-Based Regulatory (SBR) Framework introduced by RBI.
We offer end-to-end advisory for NBFC registration, conversion, compliance, and restructuring — covering CoR application with RBI, capital structuring, FEMA compliance, NBFC audits, returns, and ongoing regulatory support — helping promoters, fintechs, and NBFC boards operate with full regulatory confidence.
End-to-end support for Certificate of Registration (CoR) with RBI, from structuring to approval.
Conversion of existing companies into NBFCs and transition between NBFC categories.
Acquisition, takeover, and restructuring of existing NBFCs with RBI approval and due diligence.
Ongoing compliance under RBI Master Directions, SBR framework, and Fair Practices Code.
Periodic returns like NBS-1, NBS-2, NBS-7, ALM, FC-GPR, and annual supervisory returns.
Statutory audit, concurrent audit, and regulatory compliance audit as per RBI requirements.
Drafting of credit policy, risk management, KYC/AML, fair practices code, and IT/IS policies.
Compliance support under RBI’s Digital Lending Guidelines, LSP tie-ups, and data governance.
Investment and Credit Company — financial institutions engaged in lending, investments, and financing activities.
Microfinance institution focused on small-ticket loans to low-income borrowers and self-employed individuals.
Engaged in factoring and assignment of trade receivables to improve business working capital.
Infrastructure Finance Company providing funding for infrastructure projects and long-term lending.
Housing Finance Company — specialized NBFC providing home loans, regulated jointly by RBI and NHB.
Peer-to-peer lending platform that matches lenders with borrowers under RBI’s P2P framework.
Account Aggregator enabling secure, consent-based sharing of financial data between institutions.
Core Investment Company holding investments in group companies — used widely in large corporate groups.
Must be a company incorporated under the Companies Act, 2013 (private or public limited).
Minimum NOF of ₹10 crore (revised by RBI), higher thresholds for specialized NBFC categories.
Directors and promoters must have clean track records — no defaults, frauds, or regulatory actions.
Directors must meet RBI’s Fit and Proper Criteria, including integrity and financial experience.
Detailed 5-year business plan, projections, target customers, and risk framework.
No-objection certificate and banker’s report confirming source and genuineness of NOF.
Select the appropriate NBFC category, structure capital, and plan the shareholding pattern.
Incorporate the company (or restructure existing) with NBFC-compliant objects and NOF.
File online application with RBI through COSMOS portal along with physical submission.
Respond to RBI queries, supervisory review, Fit & Proper evaluation, and compliance checks.
Receive Certificate of Registration from RBI and commence regulated NBFC operations.
Annual statutory audit by qualified auditors with NBFC-specific disclosures.
NBS-1, NBS-2, NBS-7, ALM, CRILC, and other periodic returns to RBI.
Maintain prescribed Capital to Risk-Weighted Assets Ratio at all times.
Income recognition, asset classification, and provisioning as per RBI norms.
Implementation of FPC, grievance redressal, and customer protection measures.
Customer due diligence, PMLA reporting, STR and CTR to FIU-IND.
Board composition, audit committee, risk committee, and SBR framework compliance.
Compliance with RBI Digital Lending Guidelines, LSP disclosures, and data protection.
Partner with our team for end-to-end NBFC advisory — from structuring and RBI registration to audits, returns, and ongoing regulatory compliance.
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