Non-Banking Financial Companies (NBFCs) have become a vital part of India’s financial system, offering a range of financial services without holding a banking license. If you’re considering launching an NBFC, understanding the minimum capital requirements is the first and most critical step. In this blog, we break down the capital norms, the registration process, and the importance of seeking help from an experienced NBFC registration consultant in India.
What is an NBFC?
A Non-Banking Financial Company (NBFC) is a financial institution that provides banking services like loans, credit facilities, asset financing, investments, and more, without having a full banking license. NBFCs are regulated by the Reserve Bank of India (RBI) and must comply with specific registration requirements.
Minimum Capital Requirement for NBFC Registration in India
As per the Reserve Bank of India guidelines, the minimum Net Owned Fund (NOF) required for NBFC registration is:
- ₹2 Crore for standard NBFCs
- ₹10 Crore for NBFCs involved in Infrastructure Finance
- ₹100 Crore for Core Investment Companies (CICs)
- ₹5 Crore for NBFCs in the North Eastern Region (concession provided by RBI)
This capital must be maintained in the form of equity capital (paid-up share capital) and free reserves, excluding revaluation reserves.
Why the Capital Requirement Matters
- Ensures financial stability of the NBFC
- Builds trust among investors and borrowers
- Required for obtaining the NBFC License from RBI in India
- Helps meet operational and compliance-related expenses
Online NBFC Registration in India: Step-by-Step Process
- Form a Company
Register a Private or Public Limited Company under the Companies Act, 2013. - Meet Capital Requirement
Infuse the required minimum NOF into the company’s bank account. - Open a Bank Account
Deposit the NOF into a fixed deposit and obtain a certificate from the bank. - Apply for Registration with RBI
Submit an online application via the COSMOS portal on the RBI’s official website. - Submit Hard Copy
After online submission, send a physical copy to the RBI’s regional office with all required documents. - Obtain the NBFC License
Upon successful verification, the RBI issues the NBFC License online.
Documents Required for NBFC Registration
- Certificate of Incorporation
- Memorandum and Articles of Association (MOA/AOA)
- Board Resolution for NBFC incorporation
- Auditor’s certificate confirming NOF
- Banker’s Report
- Detailed business plan
- KYC details of directors/shareholders
Benefits of Hiring an NBFC Registration Consultant in India
Navigating the regulatory landscape for NBFC registration online in India can be complex. This is where a trusted NBFC registration consultant becomes invaluable. Here’s why:
- Expert guidance on compliance and documentation
- Support in capital structuring and financial planning
- Ensuring timely and accurate submission to RBI
- Post-registration compliance support
Choosing the Right NBFC Registration Consultant
When choosing a NBFC registration consultant in India, look for:
- Proven track record in handling NBFC licensing
- Up-to-date knowledge of RBI norms
- Transparent pricing and timelines
- End-to-end support from application to compliance
Conclusion
Meeting the minimum capital requirement is just the beginning of your NBFC journey. With the right preparation and guidance, especially from an experienced NBFC registration consultant, you can ensure a smooth and compliant entry into India’s vibrant financial sector. Whether you’re applying for an NBFC license online, or exploring the nuances of NBFC registration online in India, expert help can make all the difference.