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Nbfc compliance

Nbfc compliance

Non-banking Financial Corporations (NBFCs) provide financial services similar to traditional banks but do not have full banking licenses. These services can include lending, investment activities, asset financing, and more. The compliance requirements for NBFCs may change over time. They need to register with the regulatory authority and obtain the necessary license to operate legally. They follow prudential norms, which require less capital adequacy and ensuring liquidity. NBFC must establish strong compliance programs and monitor their practices to align with changing requirements.


Requirements for NBFC compliance in India:

    • Get the registered ID and password from the Reserve Bank of India.
    • Installation of XBRL RBI file required.
    • Update profile on the file XBRL portal on a regular basis.

    The following NBFCs are listed based on activities:

    • Mortgage guarantee companies
    • Debt fund non-banking financial company
    • NBFC-Factors NBFC- Microfinance Companies (MFIs) Infrastructure.
    • Systemically Important Core Investment Company (CIC)
    • Investment and Credit Company (ICC)
    • Infrastructure Finance Company (IFC)
    • NBFC – Non-Operative Financial Holding Company (NOFHC)

    Based on liabilities:

    • Deposit Accepting NBFCs
    • Non-deposit Accepting NBFCs
    • Systematically important (NBFC –ND-SI)
    • Other Non-Deposit Holding companies

    Penalties for non-compliance

    • If you are an NBFC and fail to comply with the regulations on time, the RBI will severely penalize you. varying types of NBFCs are subject to varying fines for non-compliance. The confiscation of the NBFC license or possibly the closure of the business could be among the most serious repercussions.

You need to know before begin everything.

The appointment of a director within 30 days of the appointment, adoption of any notifications at the company's board meeting, and submission of a certified copy of these notifications to RBI are the periodic compliances for an NBFC.

NBFC 9, convening statutory meetings, maintaining accounts, filing GST and income tax returns, and filing the annual return are among NBFC's annual compliance requirements

The different types of compliance for NBFC are monthly compliances, annual compliances, and periodical compliances.

The different types of compliance for NBFC are monthly compliances, annual compliances, and periodical compliances.