NBFC Compliances - Overview

Non Banking Financial Companies (NBFC ) are playing a vital role in our economy nowadays. Non banking financial company provides loans , advances, leasing, hire purchases to the businesses.

Reserve bank of india has introduced several notifications, Circulars, Master Direction for regulating the NBFC.

All the companies holding the Certificate of registration of Non Banking Financial Companies (NBFC) must comply with the regulations as may be provided by the Reserve bank of india, failure of which may cause penal actions by RBI and may also lead to the Cancellation of License of the NBFC.

Mandatory Returns to be filed by NBFC

The following are the Mandatory return which are required to be filed by the different kinds of NBFC :

Return	Time limit	New Return Introduced	Explanation
NBS -1 / DNBS – 01	Upto 15 April / 15 July / 15 Oct. / 15 Jan	DNBS – 01 - RBI has introduced the new XBRL return to be filed in place of form NBS 1. For FY 2019-20 both NBS 1 and DNBS – 01 XBRL needs to be filed. For FY 2020-21 and onwards only DNBS – 01 XBRL return is required to be filed.	Return on Financial indicators by NBFC accepting or holding deposit to be filed within 15 days of closure of the quarter
NBS 2 / DNBS – 03	Upto 15 April / 15 July / 15 Oct. / 15 Jan	DNBS – 03 - RBI has introduced the new XBRL return to be filed in place of form NBS 2 NBS 3and NBS 7. For FY 2019-20 both NBS 2 / 3 /7 DNBS – 03 XBRL needs to be filed.For FY 2020-21 and onwards only DNBS – 03 XBRL return is required to be filed.	Return on Prudential norms to be filed by deposit taking NBFC within 15 days of closure of the quarter
NBS 3 / DNBS – 03	Upto 15 April / 15 July / 15 Oct. / 15 Jan		Return on liquid assets to be filed by deposit taking NBFC within 15 days of closure of the quarter
NBS 7 / DNBS – 03	Upto 15 April / 15 July / 15 Oct. / 15 Jan		Return on Prudential norms to be filed by Non deposit taking systematically important NBFC to be filed within 15 days of closure of the quarter
ALM Return	Upto 30 April / 30 October		Every Deposit taking NBFC holding public deposit of more than Rs 20 Cr. Or Asset size of more than 100 Cr. Needs to fiule the ALM Return within one month of each half of financial year
NBS 8 / DNBS – 02	Upto 30 May every year	DNBS – 02 - RBI has introduced the new XBRL return to be filed in place of form NBS 8 and NBS 9. For FY 2019-20 both NBS 8 / 9 and DNBS – 02 XBRL needs to be filed.For FY 2020-21 and onwards only DNBS – 02 XBRL return is required to be filed.	Every Non Deposit taking NBFC having asset size of INR 100 Cr. – 500 Cr. Is required to file this return every year within 60 days of closure of financial year
NBS 9 / DNBS – 02	Upto 30 May every year		Every Non Deposit taking NBFC having asset size upto INR 100 Cr. Is required to file this return every year within 60 days of closure of financial year

Other compliances to be made by NBFC

The following are the other compliances that needs to be fulfilled by NBFC:

• Board resolution with regard to Non acceptance of deposit : Every Non Deposit taking NBFC shall submit a board resolution within 30 days of commencement of financial year relating to Non Acceptance / holding of any public deposit.
• Statutory Auditor Certificate on Prudential Norms : Every NBFC is required to submit to the concerned regional office of the RBI, a Statutory Auditor Certificate in relation to the compliance of Prudential Norms within 30 days of approving the balance sheet of the company in the boars meeting.
• Statutory Auditor Certificate on Compliances of FDI Norms: Every NBFC having FDI is required to submit to the concerned regional office of the RBI, a Statutory Auditor Certificate in relation to the compliance of FDI Norms within 30 days of each half of financial year.
• Adoption or review to Fair practice code : Every NBFC shall in its first board meeting of the financial year, review and Adopt the fair practice code of the NBFC.
• Compliance with the KYC Guidelines : Every NBFC while carrying on the business of NBFC shall always comply with the KYC guidelines as prescribed by the Reserve Bank of india in this regard.
• Statutory Auditor Certificate on NBFI Activities : Every NBFC is required to submit to the concerned regional office of the RBI, a Statutory Auditor Certificate in relation to the NBFI activities within 30 days of approving the balance sheet of the company in the board meeting.

How Rajput Jain and Associates can Assist

We offer all kinds of Consultancy, Compliances and Registration Services in relation to Non Banking Financial Company ( NBFC ). We have empanelled various experts to provide the expert advisory, Registration and Compliances services for Non Banking Financial Company (NBFC).

Further, we are having a vast experience in obtaining Certificate of registration of NBFC in india.

The services we provide in Non Banking Financial Company ( NBFC ) Compliances are:

• Advisory relating to annual compliances of Non Banking Financial Company ( NBFC )
• Preparation and certification Statutory Auditor certificate
• Preparation of draft documents and submission to RBI for completing the compliances
• Preparation of Financial Statement
• Statutory Audit Report under Companies Act, 2013
• Tax Consultancy by a Chartered Accountant
• Income Tax Return Filing
• Annual ROC Filing by Company Secretary
• Free tax due-diligence check