Non-Banking Financial
(NBFC) Compliance Guide
Non-Banking Financial Institutions (NBFCs) are 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 (as laid down in the Companies Act Section under the Compliance Tab of this website), NBFCs are also required to follow the guidelines prescribed 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.
Entities Exempt from Registration
Following entities do not require CoR from RBI
- Venture Capital Fund
- Merchant Banking companies
- Stock broking companies registered with SEBI; Insurance Company holding a valid Certificate of Registration issued by IRDA
- Nidhi companies as notified under Companies Act, 2013
- Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982
- Housing Finance Companies regulated by National Housing Bank, Stock Exchange
- A Mutual Benefit Company
Classification of NBFCs
Liability Based NBFCs
4 TypesAsset Based NBFCs
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| S.No. | Type of Return | Due Time | Periodicity |
|---|---|---|---|
| 1 | NBS1 | Within 15 days of the end of each Quarter | Quarterly |
| 2 | NBS2 | Within 15 days of the end of each Quarter | Quarterly |
| 3 | NBS3 | Within 15 days of the end of each Quarter | Quarterly |
| 4 | Branch Information Return | Within 15 days of the end of each Quarter | Quarterly |
| 5 | Reporting to Central Repository of Information on Large Credits (CRILC) | Within 21 days of the end of each Quarter | Quarterly |
| 6 | ALM (NBFC-D) — having public deposit of > INR 20 Cr OR Asset Size of > INR 100 Cr | Within 30 days of the end of half year | Half Yearly |
| 7 | Statutory Auditors Certificate | Within 1 month from the date of finalisation of Balance Sheet OR 30 December, whichever is earlier | Annual |
| 8 | Reporting of Special Mention Account status (SMA-2 Return) | Every Friday | Weekly |
NBFC-ND-SI — Non-Deposit Taking (Systemically Important)
Systemically Important| S.No. | Type of Return | Due Time | Periodicity |
|---|---|---|---|
| 1 | NBS7 | Within 15 days of the end of each Quarter | Quarterly |
| 2 | NBFC-ND-SI 500 Cr | Within 15 days of the end of each Quarter | Quarterly |
| 3 | ALM-1 | Within 15 days of the end of each Quarter | Quarterly |
| 4 | Branch Information Return | Within 15 days of the end of each Quarter | Quarterly |
| 5 | Reporting to Central Repository of Information on Large Credits (CRILC) | Within 21 days of the end of each Quarter | Quarterly |
| 6 | ALM-2 & 3 | Within 30 days of the end of half year | Half Yearly |
| 7 | Statutory Auditors Certificate | Within 1 month from the date of finalisation of Balance Sheet OR 30 December, whichever is earlier | Annual |
| 8 | Reporting of Special Mention Account status (SMA-2 Return) | Every Friday | Weekly |
NBFC-ARC — Asset Reconstruction Company
Annual Focus| S.No. | Type of Return | Due Time | Periodicity |
|---|---|---|---|
| 1 | ARC | Within 15 days of the end of each Quarter | Quarterly |
| 2 | Statutory Auditors Certificate | Within 1 month from the date of finalisation of Balance Sheet OR 30 December, whichever is earlier | Annual |
NBFC-ND — Asset Size: INR 100 Cr – INR 500 Cr
Annual| S.No. | Type of Return | Due Time | Periodicity |
|---|---|---|---|
| 1 | NBS8 | Within 60 days of the close of the Financial Year i.e. 30 May | Annual |
| 2 | Statutory Auditors Certificate | Within 1 month from the date of finalisation of Balance Sheet OR 30 December, whichever is earlier | Annual |
NBFC-ND — Asset Size: Less than INR 100 Cr
Annual| S.No. | Type of Return | Due Time | Periodicity |
|---|---|---|---|
| 1 | NBS9 | Within 60 days of the close of the Financial Year i.e. 30 May | Annual |
| 2 | Statutory Auditors Certificate | Within 1 month from the date of finalisation of Balance Sheet OR 30 December, whichever is earlier | Annual |
RNBCs — Residuary Non-Banking Companies
Mixed Periodicity| S.No. | Type of Return | Due Time | Periodicity |
|---|---|---|---|
| 1 | NBS3A | Within 15 days of the end of each Quarter | Quarterly |
| 2 | NBS1A | Within 6 months of the close of the Financial Year | Annual |
| 3 | Statutory Auditors Certificate | Within 1 month from the date of finalisation of Balance Sheet OR 30 December, whichever is earlier | Annual |
Other NBFCs — Overseas & FDI Returns
Mixed| S.No. | Type of Return | Due Time | Periodicity |
|---|---|---|---|
| 1 | Overseas Investments | Within 15 days of the end of each Quarter | Quarterly |
| 2 | Return on FDI | Within 30 days of the end of half year | Half Yearly |