Registration with RBI as NBFC

Registration with RBI as NBFC

Step 1: Eligibility Criteria

To begin with, ensure that the company meets the minimum eligibility criteria set by the Reserve Bank of India (RBI) for registering as an NBFC.
- The company should be a private limited company or public limited company.
- It must have minimum net owned funds (NOF) of ₹5 crore (as per RBI regulations, which will further increase to ₹10 crore by 31/03/2027

Mandatory NOF:

In NBFC (Non-Banking Financial Company) regulations, NOF stands for Net Owned Funds — a key capital adequacy metric established under Section 45-IA(7) of the RBI Act, 1934.

NOF is calculated as:

Paid-up equity capital + free reserves – accumulated losses, deferred revenue expenditure, intangible assets
Further reduced by any investments, loans, deposits, etc., in subsidiaries, group companies, or other NBFCs in excess of 10% of (a)

Under the RBI's Scale-Based Regulation (Master Direction – RBI (NBFC–SBR), Oct 19, 2023):

₹5 cr: For NBFC-ICC/MFI/Factor – as on Mar 31, 2025

₹10 cr: For same categories – by Mar 31, 2027

Step 2: Application to RBI

Submit an application to the RBI with a detailed business plan, highlighting the financial services the company will offer.
Provide the necessary documents including:
- Memorandum and Articles of Association (MOA & AOA)
- Details of directors and promoters
- Certificate of incorporation
- Net owned funds statement
- Details of the business model and financials

Step 3: Approval from RBI

After receiving the application, RBI reviews the details provided and issues the Certificate of Registration (CoR) if the application is approved.
RBI may issue certain conditions on the operations and compliance.

Registration with RBI as NBFC

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Registration with RBI as NBFC

Related Services:

CKYC (Central KYC)

CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India)

NESL (National E-Governance Services Ltd.)

Registration with RBI as NBFC

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