NON BANKING FINANCIAL COMPANY (NBFC) REGISTRATION

According to the latest, RBI-aligned NBFC Company Registration process in India, updated based on the most recent regulatory guidelines and notifications (including Scale-Based Regulation (SBR) framework and updated Net Owned Fund (NOF) requirements):

1. Regulatory Framework (2025–2026)

RBI regulates NBFC registration under Section 45-IA of the RBI Act, 1934. The central bank has revised guidelines in 2025 introducing Scale-Based Regulation (SBR) and updating key eligibility criteria like NOF on a phased basis.

2. Eligibility & Pre-Conditions (Latest RBI Guidelines)

1. Company Structure

Your applicant must be:

• A company incorporated under the Companies Act, 2013 (Private Ltd or Public Ltd).
• Principal business must be financial in nature (e.g., lending, investment, leasing, etc.).
• Registered office must be located in India.

1. Minimum Capital (NOF) Requirements

Under the updated framework, Net Owned Funds (NOF) are being increased in phases:

Important: NOF is computed after deductions for group and subsidiary exposures.

1. Fit & Proper Criteria

RBI assesses promoters, directors and key management on:

• Integrity, reputation, track record
• Expertise in finance/management
• Credit history

No adverse legal, credit, or regulatory record is preferred.

3. Step-by-Step NBFC Registration Process

Step 1: Incorporate the Company

• Register a Private Ltd / Public Ltd company under Companies Act, 2013.
• Ensure the Main Object in MOA includes NBFC activities (financial intermediation).

Step 2: Capital Infusion & NOF Deposit

• Infuse minimum equity as per NOF requirement (e.g., ₹10 crore for NBFC-ICC in later phases).
• Deposit capital and obtain bank/auditor certificate confirming NOF.

Step 3: Draft Internal Policies

Prepare key governance documents:

• Board resolutions
• Fair Practices Code
• Risk Management Policy
• Compliance and AML/KYC policy
• IT framework (especially for digital lending)

Step 4: Online Filing on PRAVAAH Portal

From May 1, 2025, RBI migrated NBFC registration applications to the PRAVAAH portal (replacing older COSMOS).

• Create account
• Fill application form
• Upload all documents
• Get Application Reference Number (ARN) after submission

Step 5: Physical Submission

After online submission you must send hard copies of:

• Printed application
• Board resolutions
• Affidavits
• Auditor / banker certificates
• All supporting documents

This is typically sent to the RBI Dept of Regulation, Central Office, Mumbai.

Step 6: RBI Review & Replies

RBI may request:

• Clarifications
• Additional documentation
• Meetings with promoters

Expect this review to take 4–9 months (can vary).

Step 7: Certificate of Registration (CoR)

Once approved, RBI issues a Certificate of Registration (CoR).
No NBFC can operate or accept funds without a CoR.

4. Post-Registration Compliance

Once NBFC is registered, RBI compliance continues:

• Regular Returns & Reporting
• Maintain Capital to Risk Weighted Assets Ratio (CRAR)
• Annual statutory audits
• Update RBI on material changes
• Follow fair practice and customer protection norms
• RBI can cancel registration for non-compliance (recently seen with many NBFCs)