Reserve Bank of India Simplified Registration of New Non-Banking Financial Companies

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

Registration Process:

• 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.

About NBFC:

Financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license