NBFC Registration- What is NBFC
Roles and Functions of NBFC
Some of the Roles and Functions of NBFC are as follows:-
1)NBFC creates a favorable balance in addressing the Financial needs of the country, also when large number of applicants are turned down by Traditional Banks of India.
2)NBFC provides loan on alternative credit basis to assess the loan application.
3)Indian Fintech startup use these registrations in order to offer Financial Services.
NBFC based on the authorization to take deposits
1.The Deposit taking NBFC (Type 1)
2.Non- Banking accepting NBFC (Type 2)
NBFC based on their activities :
1.Non-Banking Financial Company-- Investment and credit company
2.Infrastructure Debt Fund
3.Peer to peer lending marketplace
4.Infrastructure Finance company
5.Core investment company
6.Mortgage guarantee company
7.Mutual benefit Finance company
2.Minimum capital of 2 crores in the account holder is Compulsory.
3.Create a Fixed Deposit of 2 Crores.
4.FDI compliance as per FEMA Act ( in case of Foreign investment)
5.Complete Documentation is required
6.Necessary documents along with FD Receipt is to be submitted before RBI.
2.Certified copy of registration certificate is required from the Regional Registrar of Companies.
3.Latest updated KYC and income Proof of directors and shareholders are required.
4.Updated net worth of Director and shareholders of the company is to be attached along with the documents.
5.Banker report on initial Fixed deposit of Rs. 2 cr.
6.Proof of Educational qualification of directors and shareholders.
7.Latest credit reports of directors and shareholders.
8.Submission of Director’s profile which proves at least 10+ years experience in financial institution
9.Detailed action plan about the Loan products, Fair practice code, credit and Risk assessment policy
10.Submission of IT process.
2.Then there should be some Business plan in its registration process which involves Founders and executive services, Loan Product, lending procedure with standard operating procedure, SWOT analysis, credit and risk model, competitors analysis, Financial forecast etc.
3.Formation and incorporation of the company and that company must be NBFC registration under companies act, 2013 or earlier Companies Act, 1956.
4.The minimum amount of net owned capital or fund which must be possessed by the aspirant company for NBFC registration in india is 2 Cr, i.e. paid up equity share capital.
5.Open a fresh bank account. Here NBFC registration required minimum capital has to be kept in the deposit account opened which must be free from all liens. Generally such amounts are maintained in the form of Fixed deposit, but while making the application to the RBI then this amount has to be maintained in their Bank account as RBI verifies the deposits of the company with the concerned bankers.
6.The aspirant company is required to submit the application for NBFC registration online to the RBI. after which the Applicant company will get an application reference number for NBFC registration. After that, the company is required to submit the hard copy of the online application along with the required documents to the concerned regional office of the RBI.