Non – Banking Financial Companies are the types of entities which are not banks but are into providing financial services. They are financial institutions that offer semi-banking services.
Different Categories of NBFCs Registered with RBICategories of NBFCs can be differentiated in terms of types of liability, such as Deposit and Non – Deposit accepting.
Investment and Credit Company (ICC)
Mortgage Guarantee Companies (MGC)
Non-Banking Financial Company – Factors (NBFC-Factors)
Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI)
Infrastructure Finance Company (IFC)
Systemically Important Core Investment Company (CIC-ND-SI)
NBFC- Non-Operative Financial Holding Company (NOFHC)
NBFC cannot accept demand Deposit.
NBFCs are not a part of the payment and settlement system and cannot issue cheques drawn on itself.
Unlike in case of banks, the deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.
The non-banking companies, duly registered with the Reserve Bank of India are allowed to accept the public deposits, and they are required to comply with the following regulations as stated under the Non-Banking Financial Companies Acceptance of Public Deposits Directions, issued by RBI.
If an entity has a valid NBFC license duly issued by the RBI, then it is mandatory for it to comply with all the NBFC annual compliances. In a case where NBFC is failing to comply with the compliances, NBFC becomes liable for the hefty penalties. The penalties could be even cancellation of NBFC License.
NBFC annual compliance, which an NBFC has to follow within six months after obtaining the License.
a) Systematic Important NBFCs- ND
a) Other NBFCs- ND
Returns by Deposit Taking NBFC
NBS-1These are the Quarterly returns on deposit in the first schedule. Such return is required to be furnished for the purpose of capturing financial details such as Profit and Loss Account, Components of assets and Liability.
NBS-2The Quarterly Return on prudential norms. The requirement to file this return is to get the details related to several norms like asset Classification, Capital Adequacy, NOF, Provisioning, etc.
NBS-3The Quarterly Return on liquid assets. The intent behind filing such norms is to capture information about statutory investment in Liquid states.
NBS-4The annual return of critical parameters which are by rejected companies those are holding public deposits. The objective behind filing this return is to find the repayment status of the rejected NBFCs accepting public deposits.
NBS-6Needs to be filed as Monthly return on exposure to capital market by deposit-taking NBFC with the total assets of Rs. 100 crore or more.
ALM returnThese returns are file as Half-yearly by NBFC holding Public Deposit which is more than the amount of Rs. 20 Crore or asset size of more than Rs. 100 Crore.
a) Requires Audited Balance Sheet and Auditor’s Report by NBFC accepting public deposits, to be furnished
b) Return related to branch Information
It is a quarterly statement providing information related to, risk assets ratio, capital funds, risk-weighted asset.
NBS-2Such return is the Monthly return on a critical financial parameter of NBFCs-ND-SI.
ALM Returns.
Monthly- statement of short-term dynamic liquidity in format NBS-ALM-1.
Half Yearly- Statement of structural liquidity in format NBS-ALM2.
Half Yearly- Statement of interest rate sensitivity in format NBS-ALM-3.
Branch info return.
Quarterly return on important financial parameters of non-deposit taking NBFC having assets of more than ₹ 50 crores and above but less than ₹ 100 crores. The requirement like name of the company, address, Net Owned Fund, profit/loss during the last three years needs to be furnished quarterly by non-deposit taking NBFCs with asset size between ₹ 50 crores and ₹ 100 crores.
| S.No | Article | Term |
|---|---|---|
| 1 | Unaudited March Monthly return/NBS7 | on or before 30th June |
| 2 | Audited March Monthly return/NBS7 | Upon completion |
| 3 | Statutory Auditors certificate on Income & Assets | on or before 30th June |
| 4 | Information about Cos having FDI/Foreign Funds | on or before 30th June |
| 5 | Board Resolution of Non-acceptance of Public Deposit | Much before starting of the new Financial year |
| 6 | Annual Balance Sheet with profit and loss account details | One month from the date of signoff |
| 7 | Declaration by Auditors, who are acting as auditors of the company | annual basis |
| S.No | Article | Term |
|---|---|---|
| 1 | Monthly Return | by 7th of every month |
| 2 | Upload monthly | by 7th of every month |
| S.No | Article | Term |
|---|---|---|
| 1 | Appointment of Director(Annexure-III) | within 30 days of appointment |
| 2 | Upload monthly return | within 30 days of the resignation |
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