|NBFCs registered with RBI||Regulation, supervision, surveillance and enforcement under RBI|
|NBFC regulated by other regulators||Depends on the type of institution|
|Housing Finance Institutions||National Housing Bank|
|Merchant Banking Company/Venture Capital Fund Company/Stock Broking/Collective Investment Schemes (CIS)||Securities Exchange Board of India|
|Nidhi Companies and Mutual Benefit Companies||Ministry of Corporate Affairs|
|Chit Fund Companies||State Government|
|Insurance Companies||Insurance Regulatory and Development Authority|
|Non-Banking Non-Finance Companies||Regulation, supervision, surveillance and enforcement under the Companies Act 1956.|
For a company to be considered an NBFC, it should be registered as per the rules, regulations, and provisions mentioned in the Companies Act 2013 of the Companies Act 1956.
The minimum owned fund for this should be Rs.2 crore and this shouldn’t be borrowed fund. (This limit is different in other cases like that of specialized NBFCs like NBFC-MFIs, NBFC Factors, CICs, as it is decided on the kind of NBFC). Any gift from spouse comes under owned-funds.
At least 1/3rd of the directors must have some experience in finance.
Also, there must be a detailed plan for the next 5 years.
For a company to be considered as IDF-MF, the minimum owned fund should be at least Rs.3 crore, CRAR of 15% and NPA not more than 3% of the net advances. Along with this, the company should be operational for the last 5 years and profitable in the last 3 years.
Significant documents required for NBFC Registration in India are as follows:
NBFCs can lend both secured and unsecured loans based on their alternative lending models. These companies play a significant role in the financial services of the economy and have gone considerable changes in recent years. And after adopting high-end tech-based business models, the roles offered by them are: