NBFC Registration

Non Banking Financial Companies (NBFC) are the companies registered under the Indian Companies Act, 1956. Like all other companies, non banking financial company (NBFC) also needs to go through company rules and regulations as per the Government. Reserve Bank of India is the sole authority which administers and allows the registration certificate to all aspiring Non- banking financial company (NBFC) after checking all the details. Non banking financial company is the one which specializes in providing advance and loans to people those are unable to get financial assistance from leading banks in the country. The NBFC registration rules and regulations and procedures are well defined and managed by the Reserve Bank of India under the act of 1934. As per the RBI Act, an NBFC aspirant has minimum 2 crores of paid up capital and its financial assets must exceed 50% of its total assets in order to get a NBFC registration certificate.

• Non Banking Financial Company must be a financial institution
• Its primary business should be receiving deposits and lending money.

NBFC Registration Procedure and Requirements

Any company or financial institution which was registered under the Indian Companies Act 1956 must need to register under the Chapter iiiB of the Reserve Bank of India in order to work as Non Banking Financial Company. Section 45-IA of the RBI Act, 1934 is necessary for all financial institutions to commence business as a Non Banking Financial Company. There are few rules and regulations applied for all non banking financial companies to start its operations.

• The total assets should be more than 50% of its net assets.
• As per the RBI Act, it should raise 2 crores of capital since April 2, 1999.