NBFC Compliance - Overview
With time, RBI compliance for NBFCs has become more complicated. There was a time when banks enjoyed benefits from non-banking financial firms. There was a point when compliance with NBFCs was much easier and lenient, but RBI drafted new compliance for NBFCs after the Sahara incident and kept them under screening. Securitization of standard assets and instructions for a private placement of NBFCs are some of the important regulations that have been updated.
Non-Banking Financial Firms are registered under the 2013 Companies Act and are engaged in the activities of collecting deposits, loans and advances, buying stocks/bonds/shares, government-issued debentures, and securities. The NBFCs are actively involved and registered in the financial operations of the Reserve Bank of India. Without getting a license from the Reserve Bank of India, no NBFC is allowed to run its business.
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NBFC Compliance Registration Package
- What we provide
- Documents required
- Reserve Unique Name (RUN) from RBI and MCA
- Certificate of Incorporation (CIN)
- Permanent Account Number (PAN)
- Memorandum of Association (eMOA)
- Articles of Association (eAOA)
- Director’s Identification Number (DIN No)
- Digital Signature (DSC)
- GST Registration
- Certificate of Recognition (COR) i.e. NBFC license
- PF Registration
- ESIC Registration
- Help to Open Bank account
- The Certified copy of the Certificate of Incorporation, MOA and AOA.
- KYC documents of the directors & the shareholders of the applicant company.
- Educational and professional qualification certificate of the directors.
- Net worth certificates of the directors and the shareholders of the company.
- Bankers Report on details of deposits and loan balances, and conduct of the account.
- Credit Report of directors & shareholders.
- Detailed action plan of the proposed NBFC along with the structure of the organisation.
- Balance Sheet, Profit & Loss along with the directors' report & auditor's report.
The annual NBFC compliance checklist comprises of the NBFC compliance due date and returns that every NBFC is required to file. The list is prescribed according to the RBI guidelines and master directions.
Based on Liabilities
- Deposit Accepting NBFCs
- Non-Deposit Accepting NBFCs
- Systematically Important (NBFC-ND-SI)
- Other Non-Deposit Holding Companies
Based on Activities
- Infrastructure Finance Company (IFC)
- Investment and Credit Company (ICC)
- Systemically Important Core Investment Company (CIC)
- NBFC- Non-Operative Financial Holding Company (NOFHC)
- Mortgage Guarantee Companies
- NBFC- Microfinance Companies (MFIs)
- Infrastructure Debt Fund Non-Banking Financial Company (IDF-NBFC)
Below we have mentioned the annual NBFC compliance checklist for every Non-Deposit and Deposit Company.
|Annual Compliances|| |
|1. Undiscovered March Return / NBS-7 Return||: On or before 30th June|
|2. Statutory Auditors Certificate of Income and Assets||: On or before 30th June|
|3. Details of companies with FDI or Foreign Funds||: On or before 30th June|
|4. Inspected return for March / NBS-7||: Upon completion|
|5. The audited file of annual balance and P&L Account||: One month from the date of sign off|
|6. Reconciliation of a Public Deposit Rejection||: Before the commencement of the new financial year|
|7. Announcement of Auditors to Annual Audit Company||: Annual basis|
|Monthly Compliance|| |
|1. Monthly Return||: By the 7th of each month|
|2. Upload Monthly Return||: By the 7th of each month|
|Periodical Compliances|| |
|1. Appointment of Director (Appendix-III)||: Within 30 days of appointment|
|2. Resignation of Director that is DIR-12 + Challan report||: within 30 days of appointment|
|3. Receipt of any notice at the next Board Meeting and filing a certified copy with the RBI|| |