Learn about what is Non-Banking Finance Company, Registration Process, Documents, requirements & Advisory by Ex RBI Consultants. Doc designed by Enterslie.com.

1. OVERVIEW OF THIS DOC
NBFCs - Definition
Demand of NBFC
Types of NBFCs
RBI on NBFC
Process Overview
Documents Overview
NBFC vs Bank
NBFC Advisory
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2. F U N C T I O N S O V E R V I E W
An NBFC can provide both secured and
unsecured loans to the takers based on
alternative lending models. The
government has been promoting NBFC
so that the unorganised money lenders
and people willing to run financial
services can organise their lending
operations.
R B I A C T 1 9 3 4
NBFC (Non-Banking Financial Company)
is engaged in financial activities as
defined under section 45-IA of the RBI
Act 1934
A N O N - B A N K I N G
F I N A N C E C O M P A N Y

3. T
Y
P
E
S
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RBI

4. ASSET
FINANCE
COMPANY
Loans for operating heavy assets such as
automobiles, excavators, generators
(accounting for 13.7% of the total number
of NBFCs)

5. LOAN
COMPANY
Operating loan business
(36.2% of the total number of NBFCs)

6. INVESTMENT
COMPANY
Buying and selling securities
(Accounting for 12.6% of the total number of
NBFCs)

7. INFRASTRUCTURE
FINANCE
COMPANY
Provide infrastructure loans
(31.5% of the total number of NBFCs)

8. SYSTEMICALLY
IMPORTANT
CORE
INVESTMENT
COMPANY
Equity Investment

9. INFRASTRUCTURE
DEBT FUND
Provide investment in infrastructure debt
funds

10. MICRO
FINANCE
INSTITUTION
(MICROFINANCE)
Microfinance to SMEs
(3.0% of the total number of NBFCs)

11. FACTOR
(ACCOUNTS
RECEIVABLE)
Accounts Receivable financing

12. NON-OPERATIVE
FINANCIAL
HOLDING
COMPANY
Allow sponsor / sponsor groups to set up
new banks

13. MORTGAGE
GUARANTEE
COMPANY
Provide Mortgage Loan

14. AMOUNT
AGGREGATOR
Collect, organize and provide customers
with financial asset information

15. P2P
Provide P2P lending
platform

16. INDIAN RBI
ACT DEFINES
NBFC AS
1. Companies registered under the
Companies Act;

17. Companies engaged in the provision of credit facilities such as
loans and advance payments, securities and debt, and other
securities, leasing, installment, insurance and other businesses.
A non-bank institution is a company registered under the
"Company Law" whose main business is to accept deposits under
any plan or arrangement in installments in a lump sum,
installment or any other manner, which is also referred to in this
law Non-bank financial company.

18. However, according to the RBI Act, the following
categories are not part of the NBFC's competence:
Any institution whose main business includes agricultural activities;
Any institution whose main business includes industrial activities;
Any institution whose principal business includes the purchase or sale
of any goods (other than securities);
Any institution whose principal business includes providing any services
and selling / buying / constructing real estate.
1.
2.
3.
4.

19. Burden of public
sector
Heavy credit
demand
Due to increased
consumption
Lack of traditional
banks in rural areas
F A C T O R S F O R N B F C
D E V E L O P M E N T

20. P R O C E S S O V E R V I E W
In order to establish any of these types of financial
institutions, a registration number must be received
from the Reserve Bank of India. To register for NBFC,
applicants must submit the required form to the
Reserve Bank of India for inspection, along with the
required attachments. Once it is confirmed that the
requirements of the RBI Act have been complied
with, a registration certificate is issued to the
agency.

21. The applicant must be a company
registered under the latest Company
Law
The company has a minimum net
capital of Rs 2 crore
Board of directors should have
member from finance background or
banking experience.
The company's CIBIL (Indian Credit
Registration Agency) records no
violations

22. R E Q U I R E M E N T S
O V E R V I E W
A company
registered
under the
Companies
Act;
Should have a
minimum net
ownership of
Rs 2 crore;
For specific
categories of
NBFCs, there
is a specific
net ownership
funding
requirement

23. D E P O S I T O R S
C A N N O T E N J O Y
D E P O S I T
I N S U R A N C E
N O T A C C E P T
D E M A N D
D E P O S I T S
N O T A P A R T O F
T H E P A Y M E N T
A N D
S E T T L E M E N T
S Y S T E M
C A N N O T I S S U E
I T S O W N C H E C K
N B F C I S D I F F E R E N T
F R O M B A N K S

24. L O A N S A N D
C R E D I T
F A C I L I T I E S
Presentations are
communication tools.
A S S E T S
F I N A N C I N G
Presentations are
communication tools.
A C Q U I S I T I O N
O F S H A R E S
Presentations are
communication tools.
S T O C K , B O N D S
Presentations are
communication tools.
N B F C C A N O F F E R
S E R V I C E S
H I R E - P U R C H A S E
Presentations are
communication tools.
I N S U R A N C E
Presentations are
communication tools.
C U R R E N C Y
E X C H A N G E
Presentations are
communication tools.
P 2 P
Presentations are
communication tools.

25. M I S S S U M A N J H A
Senior NBFC Advisor
Enterslice
M R A B H I S H E K
K U M A R
Advisory Head - NBFCs
M R S M O N I S H A
C H A U D H A R Y
Additional Director - Swarit
M E E T O U R A D V I S E R S

26. C O N T A C T U S
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