After registration and received Certificate of Registration (CoR) from Reserve Bank of India (RBI) as Non-Banking Financial Company, it required to better corporate governance and compliance mandate by RBI.
BSCA provides support services in registration & licensing for NBFC and it compliance. The process under NBFC compliance claims to maintain reports, fulfilling prudential norms & maintaining a Minimum net owned fund (NOF).
A. Registration Process under NBFC Regulation:
As a non-banking financial institution, it is crucial to comply with the regulations fixed by the Reserve Bank of India (RBI). The registration process under NBFC regulation involves applying to the RBI, along with all the necessary documents and fees. The RBI then reviews the application and grants registration if all requirements are met. Proper registration is crucial for several reasons. Firstly, it ensures that the NBFC operates legally and within the guidelines set forth by the RBI. This protects the company from any legal or financial consequences arising from non-compliance.
The points mentioned below are as follows:
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- Acquire DSC and DIN for the Directors
- Apply Name-approval
- An affidavit from Directors to meet RBI provisions
- Draft MOA & AOA
- Filing incorporation forms with necessary documents
- Obtain a Certificate of Registration from the RoC (Registrar of Companies)
- Drafting of application for registration
- Apply for registration
- The applicant has to file an online application with the RBI
- On successful submission, a CARN (reference number) will be generated to facilitate future inquiry.
- Now send the hard copies of all the submitted documents and the application to the Central office of RBI.
- The head office shall check the accuracy of the documents.
- The head office of RBI grants NBFC License only if the company is fulfilling the requirements u/s 45-IA.
- The company must commence its NBFC business within six months from the date of the Certificate of Registration (CoR)
B. Post-Incorporation Compliances under NBFC Regulation:
Post-incorporation compliances are crucial to ensure that your NBFC operates smoothly and avoids any legal complications. Here are some of the post-incorporation compliances that your NBFC must adhere to
- Registration to become a member of all CICs Registration under CERSAI or Central Registry of Securitisation Asset
- Reconstruction and Security Interest
- FIU-IND Registration
- Central KYC Registration
- Adoption of Fair Practice Code
- Submission of Financial Information to Information Utilities
- Adoption of Anti Money Laundering Policy & IT Policy
- Filing of timely return with RBI
- Convene Statutory Meetings
- Maintenance of Accounts
