A Non-Banking Finance Company is a financial entity that offers banking services to the public such as Loans and Advances, Stock Acquisition, Equities, Debt, and more. It is an important aspect of the rapidly rising Indian economy. NBFC License is granted in accordance with Section 45-IA of the RBI Act of 1934.
Procedure of Registration of NBFCs
First formality is an incorporation of the applicant company under the Companies Act, 1956 or 2013, with Minimum
Net Owned Fund of INR 2 crore (Equity Share Capital & not Preference Share Capital).
Thereafter the applicant company needs to open a Bank Account and keep the entire sum of INR 2 crores in the bank’s deposit account, which should be free from all liens.
The applicant is then required to apply for registration online on RBI’s official COSMOS website.
Post submission of the form, CARN (Company Application Reference Number) is generated that is helpful in future references.
Subsequently, the hard copies of all the documents are required to be submitted to the concerned Regional Office of RBI.
The Regional Office shall scrutinize the authenticity of the documents and on being satisfied, shall forward it to the Central Office.
The Central Office of RBI grants the NBFC registration only after the fulfilment of all prescribed requirements by the company under section 45-IA, of its act of 1934.
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