Non-Banking Financial Company
Non-Banking Financial Institutions (NBFCs) are the companies registered under the Companies Act, 2013 and engaged in the business of loans and advances, acquisition of shares / stocks / bonds / debentures / securities or other marketable securities, hire-purchase, leasing, insurance business, and chit business.
Apart from the compliance required to be followed under the Companies Act, 2013, NBFCs are also required to follow the guidelines Master Directions prescribed by the Reserve Bank of India (RBI) under the Reserve Bank of India Act, 1934.
NBFC Registration
Certificate of Registration (CoR)
Mandatory under Section 45-IA of the RBI Act, 1934
As per Section 45-IA of the Reserve Bank of India Act, 1934, before commencing any activity or carrying on any business of a non-banking financial institution, the company is required to
- obtain a Certificate of Registration (CoR) from the Reserve Bank of India.
- 2. Having a minimum Net Owned Fund (NOF) of ₹10 Crore (except for specific specialized categories like NBFC-MFI or Peer-to-Peer platforms which may have separate limits)
Entities Exempt from Registration
Following entities do not require CoR from RBI
- Venture Capital Fund, Merchant Banking companies, Alternative Investment Funds (AIFs), Stock broking companies which are regulated under SEBI.
- Insurance Company holding a valid Certificate of Registration regulated by IRDAI.
- Chit Fund companies under the Chit Funds Act, 1982 regulated by SG.
- 4. Unregistered Type I NBFCs (2026 Framework): Corporate entities whose asset size is less than ₹1,000 Crore, which do not avail or intend to avail public funds, and have no direct customer interface. These are exempt from Section 45-IA registration subject to annual board resolutions and explicit disclosure in their financial statements.
(Note: Note: Housing Finance Companies (HFCs) are now regulated directly under the RBI Scale-Based framework; they are no longer completely exempt from RBI supervision).
Classification of NBFCs
1- scale based regulation framework
4 TypesNBFCs are classified into four tiers based on size, risk, & systematic important:
catagorization by activity & Public Funds
7 TypesCompliance Return Schedule
All NBFCs are required to file periodic returns with the Reserve Bank of India based on their category, deposit status, and asset size. The following tables detail the type of return, due dates, and periodicity applicable to each NBFC category.
NBFC-D — Deposit Taking NBFC
Liability Based| Return Type | Frequency of Return | Applicability On | Purpose |
|---|---|---|---|
| DNBS 01 | Quarterly | Deposit-taking or Large Non-Deposit | Financial indicators (Assets, Liabilities) |
| DNBS 02 | Quarterly | Specific NBFC categories | Prudential Norms compliance (CRAR, Asset Profile) |
| 3 | NBS3 | Within 15 days of the end of each Quarter | Quarterly |
| DNBS 04A / 04B | Short-term | NBFC-ML and NBFC-UL | Asset Liability Management (ALM) & Structural Liquidity |
Frequently Asked Questions
Private Limited Company Registration
NBFC Registration is the process of obtaining RBI approval to conduct non-banking financial activities such as lending, investment, leasing, and financing services.
The Reserve Bank of India (RBI) regulates NBFCs under the RBI Act, 1934.
Most NBFCs require a minimum Net Owned Fund of ₹10 Crore for registration with RBI.
The registration timeline depends on document verification, eligibility review, and RBI approval processes.
Only RBI-authorized deposit-taking NBFCs can accept public deposits subject to prescribed regulatory conditions.