Mumbai Based Reserve Bank of India has taken steps to simplify the registration process for new Banking Financial Companies.
Revised Registration Format:
- The revised application form has been distributed to make the registration process smoother and hassle less.
- The Number of supporting documents to be attached with Application form has been reduced from 45 to 7-8 documents
Types of Application Format for non-deposit accepting NBFCs:
- Sources of funds
- Customer interface
- The Filled applications to register new NBFCs to be submitted at Non-Banking regulation Department in RBI, Mumbai
- RBI will scrutinize the applications and inform to the NBFCs if any documents required to be submitted
- The company should respond to the RBI’s query within a month.
Type I – NBFC – Non Deposit:
- Fast track processing of applications for Type I – NBFC – Non Deposit accepting applicants
- These companies has not privileged to access the public fund and there is no point of customer interface
- Less rigorous scrutiny and less sensitive
- If the Companies want to avail public fund or to have customer interface, they are required to get approval from Reserve Bank of India
- RBI advised that the checklists mentioned are provisional
- The amendments in the registration process of NBFCs will be announced in the First Bi-monthly Monetary Policy Statement, 2016-17.
Financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license