Non-Bank Finance Company Registration
The Non-bank financial companies are the financial institutions which offer banking services without having banking license. The NBFC also called as The Non-bank financial companies also called as nonbank financial institutions (NBFI). The NBFC is engaged in the business of loans and advances. Also takes part in the stocks/bonds/shares/securities issued by the Government. It doesn’t include any institutions whose principal business is that of agricultural activity, construction of immovable property. It is a company that has principal business of receiving the deposits under any scheme. This is also referred as non-banking financial company (Residuary Non-banking Company).
- The net-owned fund for the NBFC is of Rs.200 lakh.
- The net-owned fund of the company must not be less than Rs.2 Crore.
- At-least one director must possess working experience with NBFC/Banking.
- The CIBIL records must be clear without exception.
- The ceiling rate of interest is prescribed by the RBI. Hence the NBFC cannot exceed the rate of interest.
- The NBFC cannot issue the cheques drawn on it.
- The NBFC cannot offer gifts, incentives to the depositors.
- The deposit with the NBFC are not insured.
- Aadhaar card
- PAN card
- Proofs of the Directors and the partners
- Incorporation certificate.
- Bank statement
- Financial statement of the company.
- Memorandum of Association
- Article of Association
- Photocopy of the GST registration
- Photocopy of Income tax
- Brief documentary of business activity.
Activities of NBFC
Step1: Submit application on COSMOS
The entity that wishes to apply for NBFC registration should apply online on the official website of RBI, COSMOS. And then download the application.
Step 2: Make available approved regional office name in C-8
Name of the regional office should be provided in the Annex-1 identification in the excel application form.
Step 3: Application Reference Number of the company should be allotted
The applicant receives Company Application Reference Number. This will be used for filing the application of COR (Certificate of Registration) online.
Step 4: Send the documents for the regional office
The applicant should submit the application form and the documents to the concerned regional office that belongs to the RBI. Online CARN should be provided to the regional office.
Step 5: Status of the application is tracked
When the above said steps are followed, the applicant can check the status of the COSMOS website.
The Reserve Bank of India (RBI) is the governing authority that regulate the establishment and operation of the NBFC in India.
- The NBFC cannot accept the demand deposits
- NBFC cannot issue the cheque, since they do not forma part of payment and the settlement system.
- They cannot issue the demand drafts.
- Infrastructure Finance company (IFC)
- Systemically Important Core Investment Company (CIC-ND-SI)
- Non-banking financial company factors (NBFC-factors)
- Mortgage Guarantee Company (MGC)
- Merchant banking companies
- Core investment companies
- Chit fund companies that defined under Chit Fund Act, 1982.
- Nidhi companies defined under Companies Act, 2013.
- Companies that are engaged in the stock broking.
- Housing finance companies
- Venture Capital companies
- Insurance companies.