What is RBI Registered NBFC Registration Process?

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act of 1956 that is engaged in the primary business of lending, investing in shares/stocks/bonds/debentures, leasing, hire-purchase, insurance business, chit business, or receiving deposits under any scheme or arrangement. The Reserve Bank of India (RBI) regulates NBFCs, and this article examines the procedure for NBFC registration in India as well as some of the regulations that govern its operations.

NBFC Registration

According to Section 45-IA of the RBI Act, 1934, no company may start or carry on the business of a non-banking financial institution without first obtaining a certificate of registration and having a Net Owned Funds of Rs. 200 lakhs. A company incorporated under Section 3 of the Companies Act, 1956, with a minimum net owned funds of Rs.200 lakhs is required for registration as an NBFC. The sum of "owned funds" less than the sum investment made in shareholdings of subsidiaries, companies in the same group, and all other NBFCs, as well as the book value of debt securities, bonds, outstanding loans and advances, such as hire purchase and lease finance, created to and deposits with subsidiaries and companies in the same group, is the net owned funds.

Get your NBFC Registration Complete With MUDS
Make an application to the Reserve Bank of India's Regional Office in the required form to become an NBFC. A list of the documents that must be submitted with the NBFC application can be found here: NBFC List of Documents Required. MUDS can assist you in this process of nbfc registration. For swift and smooth processing please reach out to our website.

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