Regulatory Requirements of NBFC in India
To operate as a NBFC, it needs to obtain “Certificate of Registration” from the RBI and the NBFC registration requirements are listed as below:
- The company must be registered either as a private or as a public limited company in India.
- It must have a minimum net owned fund of Rs 2 crore.
- NBFCs are allowed to accept/renew public funds for a minimum period of 12 months and a maximum period of 60 months.
- They cannot accept deposits repayable on demand.
- Requirement of minimum investment grade credit rating need to be fulfilled.
- There is no guarantee from the RBI on repayment of the deposits.
- You need to submit hard copies of the list of documents at the regional office of RBI.
- RBI is very particular and strictly prohibits any kind of exchange of gifts /incentives or any other additional benefits.
Documents Required For the Registration of Type 1 – NBFC ND:
As per the guidelines laid by the RBI, one need to submit the following documents along with the prescribed application form for registering your NBFC as Type1-NBFC, such as: