{"id":30767,"date":"2025-12-23T18:00:29","date_gmt":"2025-12-23T12:30:29","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30767"},"modified":"2025-12-23T18:04:39","modified_gmt":"2025-12-23T12:34:39","slug":"nbfc-compliance-requirements-of-rbi","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/","title":{"rendered":"NBFC Compliance Requirements of RBI"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d19c6d683b8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d19c6d683b8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Key_NBFC_Compliance_Requirements_RBI\" title=\"Key NBFC Compliance Requirements (RBI)\">Key NBFC Compliance Requirements (RBI)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Registration_and_Capital_NBFC_Compliance_Requirement\" title=\"Registration and Capital\u00a0NBFC Compliance Requirement\">Registration and Capital\u00a0NBFC Compliance Requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Quarter_1_April%E2%80%93June_NBFC_Compliance\" title=\"Quarter 1 (April\u2013June)\u00a0NBFC Compliance :\u00a0\">Quarter 1 (April\u2013June)\u00a0NBFC Compliance :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Quarter_2_July%E2%80%93September_NBFC_Compliance\" title=\"Quarter 2 (July\u2013September)\u00a0NBFC Compliance :\">Quarter 2 (July\u2013September)\u00a0NBFC Compliance :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Quarter_3_October%E2%80%93December_NBFC_Compliance\" title=\"Quarter 3 (October\u2013December)\u00a0NBFC Compliance :\u00a0\">Quarter 3 (October\u2013December)\u00a0NBFC Compliance :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Quarter_4_January%E2%80%93March_NBFC_Compliance\" title=\"Quarter 4 (January\u2013March)\u00a0NBFC Compliance :\u00a0\">Quarter 4 (January\u2013March)\u00a0NBFC Compliance :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Annual_NBFC_Compliance_Reporting_Obligations\" title=\"Annual NBFC Compliance\u00a0 &amp;\u00a0Reporting Obligations\">Annual NBFC Compliance\u00a0 &amp;\u00a0Reporting Obligations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Governance_and_Operations_of_Non-Banking_Financial_Companies_Compliance\" title=\"Governance and Operations\u00a0of Non-Banking Financial Companies Compliance\u00a0\">Governance and Operations\u00a0of Non-Banking Financial Companies Compliance\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/nbfc-compliance-requirements-of-rbi\/#Penalties_for_Non-Compliance_of_Non-Banking_Financial_Companies\" title=\"Penalties for Non-Compliance of Non-Banking Financial Companies\u00a0\">Penalties for Non-Compliance of Non-Banking Financial Companies\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22268\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/05\/statutory-compliance-for-nbfc..jpg\" alt=\"rbi regulations for nbfcs,\" width=\"972\" height=\"647\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Key_NBFC_Compliance_Requirements_RBI\"><\/span><span style=\"color: #000080;\"><strong>Key NBFC Compliance Requirements (RBI)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0 md:text-lg [hr+&amp;]:mt-4\"><span class=\"ez-toc-section\" id=\"Registration_and_Capital_NBFC_Compliance_Requirement\"><\/span><span style=\"color: #000080;\">Registration and Capital\u00a0<strong>NBFC Compliance Requirement<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"947\" data-end=\"1096\">Mandatory Registration: Every Non-Banking Financial Companies must obtain a Certificate of Registration (CoR) from RBI under Section 45-IA of the RBI Act, 1934.<\/li>\n<li data-start=\"1100\" data-end=\"1127\">Net Owned Fund : IN\u00a010 crore minimum NOF to be maintained by 31 March 2027 &amp; Ab initio INR 10 crore NOF applicable to new NBFC registrations.\u00a0Continuous monitoring of NOF is required<\/li>\n<li data-start=\"1319\" data-end=\"1352\">Capital &amp; Prudential Norms: Stricter CRAR, leverage ratios, and exposure limits apply to NBFC-ML and NBFC-UL.\u00a0 Enhanced supervision for systemically significant Non-Banking Financial Companies.<\/li>\n<li>All NBFCs require a Certificate of Registration from RBI under Section 45-IA, with NOF escalating to \u20b910 crore (ab initio for new entrants). Scale-based norms apply stricter capital adequacy, leverage ratios, and exposure limits for ML\/UL Non-Banking Financial Companies .<\/li>\n<li>\n<p data-start=\"299\" data-end=\"605\">All non-banking financial companies are required to comply with the Reserve Bank of India\u2019s Scale Based Regulation framework, which classifies non-banking financial companies\u00a0into layers based on size, activity, and risk profile. The objective is proportionate regulation with increasing supervisory intensity.\u00a0SBR Classification : Non-banking financial companies\u00a0are categorized into:<\/p>\n<ul data-start=\"662\" data-end=\"790\">\n<li data-start=\"662\" data-end=\"683\">\n<p data-start=\"664\" data-end=\"683\">Base Layer (BL)<\/p>\n<\/li>\n<li data-start=\"684\" data-end=\"707\">\n<p data-start=\"686\" data-end=\"707\">Middle Layer (ML)<\/p>\n<\/li>\n<li data-start=\"708\" data-end=\"730\">\n<p data-start=\"710\" data-end=\"730\">Upper Layer (UL)<\/p>\n<\/li>\n<li data-start=\"731\" data-end=\"790\">\n<p data-start=\"733\" data-end=\"790\">Top Layer (TL) <em data-start=\"752\" data-end=\"790\">(to be notified by RBI, if required)<\/em><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"792\" data-end=\"889\">Each higher layer is subject to stricter prudential, governance, and disclosure requirements.<\/p>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Quarter_1_April%E2%80%93June_NBFC_Compliance\"><\/span><span style=\"color: #000080;\"><strong>Quarter 1 (April\u2013June)\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>NBFC Compliance :\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<ul>\n<li>DNBS13 \u2013 Overseas Investment Details: <em>By April 15<\/em><\/li>\n<li>DNBS02 \u2013 Financial &amp; Prudential Parameters: <em>By May 30<\/em><\/li>\n<li>Fit &amp; Proper Certification (Directors): <em>By April 15<\/em><\/li>\n<li>FDI Compliance Certificate: <em>By April 15<\/em><\/li>\n<li>Annual Statement of Directors: <em>By April 15<\/em><\/li>\n<li>Board Resolutions: Non-acceptance of deposits &amp; Fair Practice Code review: <em>First Board Meeting<\/em><\/li>\n<li>Portfolio Performance Disclosure: Monthly (Apr, May): <em>Within 15 days<\/em><\/li>\n<li>CIC Data Submission: Monthly (Mar, Apr, May): <em>Within 15 days<\/em><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Quarter_2_July%E2%80%93September_NBFC_Compliance\"><\/span><span style=\"color: #000080;\"><strong>Quarter 2 (July\u2013September)\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>NBFC Compliance :<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>DNBS13 \u2013 Overseas Investment Details: <em>By July 15<\/em><\/li>\n<li>FLA Return (Foreign Liabilities &amp; Assets): <em>By July 15<\/em><\/li>\n<li>DNBS10 \u2013 Statutory Auditor Certificate: <em>Within 1 month of Balance Sheet finalization, not later than Dec 31<\/em><\/li>\n<li>DNBS02 &amp; DNBS13 (Audited): <em>Same timeline as above<\/em><\/li>\n<li>Portfolio Performance Disclosure: Monthly (June, July, Aug): <em>Within 15 days<\/em><\/li>\n<li>CIC Data Submission: Monthly (June, July, Aug): <em>Within 15 days<\/em><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Quarter_3_October%E2%80%93December_NBFC_Compliance\"><\/span><span style=\"color: #000080;\"><strong>Quarter 3 (October\u2013December)\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>NBFC Compliance :\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>DNBS13 \u2013 Overseas Investment Details: <em>By Oct 15<\/em><\/li>\n<li>Fit &amp; Proper Certification (Half-year ended Sept 30): <em>By Oct 15<\/em><\/li>\n<li>FDI Compliance Certificate (Half-year ended Sept 30): <em>By Oct 15<\/em><\/li>\n<li>Valuation Report: Half-year end<\/li>\n<li>Portfolio Performance Disclosure: Monthly (Sept, Oct, Nov): <em>Within 15 days<\/em><\/li>\n<li>CIC Data Submission: Monthly (Sept, Oct, Nov): <em>Within 15 days<\/em><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Quarter_4_January%E2%80%93March_NBFC_Compliance\"><\/span><span style=\"color: #000080;\"><strong>Quarter 4 (January\u2013March)\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>NBFC Compliance :\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>DNBS13 \u2013 Overseas Investment Details: <em>By Jan 15<\/em><\/li>\n<li>Portfolio Performance Disclosure: Monthly (Dec, Jan, Feb): <em>Within 15 days<\/em><\/li>\n<li>CIC Data Submission: Monthly (Dec, Jan, Feb): <em>Within 15 days<\/em><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Annual_NBFC_Compliance_Reporting_Obligations\"><\/span><span style=\"color: #000080;\"><strong>Annual NBFC Compliance\u00a0 &amp;\u00a0<\/strong>Reporting Obligations<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>DNBS10, DNBS02, DNBS13 (audited) must be filed within one month of balance sheet finalization, not later than Dec 31.<\/li>\n<li>NBFCs must submit periodic regulatory returns through RBI\u2019s XBRL\/COSMOS systems, including\u00a0NBS-1, NBS-2, NBS-9, NBS-10,\u00a0ALM statements,\u00a0Statutory Auditors\u2019 Certificates,\u00a0CRILC reporting for large borrower exposures, Credit Information Companies (CIC) reporting.<\/li>\n<li>Submit periodic returns like NBS-1, NBS-2, ALM statements, and auditor certifications to RBI. Non-Banking Financial Companies follow prudential norms on asset classification, provisioning, and CRILC\/CIC reporting for large exposures<\/li>\n<li>The FLA Return is critical for entities with foreign liabilities\/assets.<\/li>\n<li>Regular monthly disclosures on portfolio performance and CIC data are mandatory.<\/li>\n<li>NBFCs must also comply with prudential norms on Asset classification and provisioning, Income recognition &amp; Stress testing and liquidity risk management<\/li>\n<\/ul>\n<h3 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0 md:text-lg [hr+&amp;]:mt-4\"><span class=\"ez-toc-section\" id=\"Governance_and_Operations_of_Non-Banking_Financial_Companies_Compliance\"><\/span><span style=\"color: #000080;\">Governance and Operations\u00a0of Non-Banking Financial Companies <strong>Compliance\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Implement board-approved internal limits on sector exposures, robust KYC\/AML, and cybersecurity for digital lending. NBFC-MFIs benefit from relaxed qualifying asset norms (60% from 75%), while fintech partnerships demand audits on data privacy and fair practices.<\/p>\n<ul>\n<li data-start=\"2062\" data-end=\"2151\">\n<p data-start=\"2064\" data-end=\"2151\">Board-approved internal exposure limits, including sectoral and group exposure caps<\/p>\n<\/li>\n<li data-start=\"2152\" data-end=\"2211\">\n<p data-start=\"2154\" data-end=\"2211\">Mandatory Audit Committee \/ Risk Management Committee<\/p>\n<\/li>\n<li data-start=\"2212\" data-end=\"2272\">\n<p data-start=\"2214\" data-end=\"2272\">Robust KYC\/AML compliance as per RBI Master Directions<\/p>\n<\/li>\n<li data-start=\"2273\" data-end=\"2350\">\n<p data-start=\"2275\" data-end=\"2350\">Cybersecurity and IT governance, especially for digitally-enabled Non-Banking Financial Companies<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2352\" data-end=\"2401\"><span style=\"color: #000080;\"><strong>Sector-Specific Relaxations &amp; Obligations<\/strong><\/span><\/p>\n<ul data-start=\"2402\" data-end=\"2659\">\n<li data-start=\"2402\" data-end=\"2481\">\n<p data-start=\"2404\" data-end=\"2420\">NBFC-MFIs: Qualifying asset requirement reduced to 60% from 75%<\/p>\n<\/li>\n<li data-start=\"2482\" data-end=\"2659\">\n<p data-start=\"2484\" data-end=\"2529\">Fintech Partnerships \/ Digital Lending<strong data-start=\"2484\" data-end=\"2527\">:<\/strong><\/p>\n<ul data-start=\"2532\" data-end=\"2659\">\n<li data-start=\"2532\" data-end=\"2608\">\n<p data-start=\"2534\" data-end=\"2608\">Mandatory audits on data privacy, customer consent, and fair practices<\/p>\n<\/li>\n<li data-start=\"2611\" data-end=\"2659\">\n<p data-start=\"2613\" data-end=\"2659\">Compliance with Digital Lending Guidelines<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 class=\"mb-2 mt-4 font-display font-semimedium text-base first:mt-0 md:text-lg [hr+&amp;]:mt-4\"><span class=\"ez-toc-section\" id=\"Penalties_for_Non-Compliance_of_Non-Banking_Financial_Companies\"><\/span><span style=\"color: #000080;\">Penalties for Non-Compliance of Non-Banking Financial Companies<strong>\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"2884\" data-end=\"2927\">Penalties for Non-Compliance coverer <span style=\"font-size: 16px;\">Monetary penalties under <\/span>RBI Act, supervisory restrictions,<span style=\"font-size: 16px;\">\u00a0&amp;\u00a0<\/span><span style=\"font-size: 16px;\">Cancellation of <\/span>CoR<span style=\"font-size: 16px;\"> in severe cases<\/span><\/li>\n<li class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Violations attract fines (e.g., INR 76.6 lakh on four NBFCs for P2P lapses) and potential license revocation under RBI Act. Group entities of banks must avoid unregulated activities per 2025 Directions<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key NBFC Compliance Requirements (RBI) Registration and Capital\u00a0NBFC Compliance Requirement Mandatory Registration: Every Non-Banking Financial Companies must obtain a Certificate of Registration (CoR) from RBI under Section 45-IA of the RBI Act, 1934. Net Owned Fund : IN\u00a010 crore minimum NOF to be maintained by 31 March 2027 &amp; Ab initio INR 10 crore NOF &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[10394],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30767"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=30767"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30767\/revisions"}],"predecessor-version":[{"id":30770,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30767\/revisions\/30770"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}