An Overview of NBFC Compliance

NBFC compliance refers to managing regulatory requirements to ensure seamless operations in the financial sector. Adhering to NBFC regulations fosters a secure financial ecosystem and provides an alternative credit source for individuals and businesses.

Setting up an NBFC involves multiple formalities, such as compliance management, reputation protection, obtaining registration and licenses, data security, and maintaining adequate capital. In India, all NBFCs must comply with stringent operational norms, regardless of their size or industry segment.

Facing challenges in meeting NBFC compliance requirements? Let Fastzeal handle your NBFC compliance management efficiently.

Advantages of RBI Compliance for NBFCs

Ensuring RBI compliance brings numerous benefits to NBFCs, including:

•                    1.       Legal Compliance: Aligns operations with regulatory frameworks.

             2.       Enhanced Market Reputation: Strengthens trust and credibility among stakeholders.

             3.       Consumer Trust: Builds confidence in financial dealings.

             4.       Business Continuity: Prevents license revocation and ensures smooth operations.

  •            5.        Market Expansion: Enables business growth by maintaining credibility with investors and lenders.

               6.       Risk Reduction: Minimizes organizational and legal risks.

               7.       Government Support: Ensures ethical operations and maintains industry reputation.

      

  
  

Eligibility Criteria for NBFC Registration

To register an NBFC, businesses must meet the following criteria:

1.                     1.       Company Incorporation: Must be registered under the Companies Act, 2013.

              2.       Enhanced Market Reputation: Strengthens trust and credibility among stakeholders.

              3.       Consumer Trust: Builds confidence in financial dealings.

              4.       Business Continuity: Prevents license revocation and ensures smooth operations.

Documents Required for NBFC Compliance

Essential documents for securing NBFC compliance include:

1.                    1.     Memorandum & Articles of Association

               2.     Minutes of Meetings

              3.    Statutory Registers

              4.    Audited Financial Statements & Balance Sheet

              5.      Shareholding Records

              6.     Details of Directors

              7.    Any Additional Relevant Documents

Process to Obtain NBFC Compliance

The procedure to meet NBFC compliance requirements includes:

1.                    1.       Application Filing: Prepare and submit an online application along with necessary acknowledgments.

              2.       Pre-Compliance Requirements: Ensure adherence to pre-NBFC registration criteria.

              3.       Document Submission: Provide required documents and exchange appropriate drafts.

              4.       Final Submission: After verification, submit the final application to secure compliance with NBFC guidelines.

Features of NBFC Compliance

NBFC compliance involves various regulatory and reporting aspects:

1.                    1.       Pre-NBFC Registration Compliance: Includes registration, capital adequacy, KYC, and AML measures.

              2.       Types of NBFCs Needing Compliance: Covers investment companies, housing finance, P2P lending, and more..

              3.       Return Filings & RBI Compliance: Includes mandatory returns such as NBS-1, NBS-2, ALM returns, and financial disclosures.

              4.       Post-Registration Compliance: Involves fair practice codes, FIU-IND registration, CERSAI registration, and timely return filings.

               5.      Annual, Quarterly, and Monthly Compliance: Ensures periodic filings for regulatory adherence.

Why Choose Fastzeal for NBFC Compliance?

1.            1.       500+ Satisfied Clients: Successfully assisted numerous businesses in managing compliance.

              2.       99% Success Rate: Ensuring seamless compliance management.

              3.      Expert Legal Support: Access to professionals for smooth paperwork handling.

              4.      Timely Reporting & Filing: Avoid penalties with prompt submissions.

   •             5.        24/7 Assistance: Dedicated experts for round-the-clock support.