Types of NBFC Based on Operations and Liabilities

In this article, we will explore types of nbfc based on liabilities and on the basis of activities they indulge in during operation. 

Types of NBFC on the Basis of Liabilities

• Deposit Accepting Non-Banking Finance Company
• Non-Deposit Accepting Non-Banking Finance Company
• Systemically Important (Non-Banking Finance Company-ND-SI)
• Other Non-Deposit Holding Company

Types of NBFC on the Basis of Activities

• Infrastructure Finance Company (IFC)
• Investment and Credit Company (ICC)
• Systemically Important Core Investment Company (CIC)
• NBFC- Non-Operative Financial Holding Company (NOFHC)
• Mortgage Guarantee Companies
• NBFC-Factors
• NBFC- Microfinance Companies (MFIs)
• Infrastructure Debt Fund Non-Banking Financial Company (IDF-NBFC)

Procedure for Incorporation of Nbfc Company & NBFC Annual Compliance

Step 1: Connect with our team: We are only a phone call or message away! Call or WhatsApp us at 8750008585 for a free consultation with our team of specialists regarding this service. You may also contact us by email at.

Step 2: Submitting the application: Accuracy is one of our strong suits! We will not waste time preparing and completing your submission after the documentation has been finished. We will notify you once the acknowledgement has been filed.

Step 3: Competent Team: We understand your company's requirements! We assign a professional to guarantee that you handle your company's enforcement requirements and that you receive thorough help throughout the process.

Step 4: Please provide all of your documents

Accuracy to ensure timeliness!

Our staff guarantees a hassle-free report. We collect the relevant papers and exchange draughts to ensure timely filing and distribution.

Step 5: Detailed Information

It is our responsibility to keep you informed!

We would gladly keep you updated on the status of your application till it is completed. Every creation of your application is brought to your attention.

Step 6: The application was successfully submitted: The application is eventually filed online when all of the paperwork has been collected and verified. We deliver on what we promise!

Prerequisites to fulfil procedure for incorporation of nbfc company

• Annual Statements and Returns must be submitted.
• Non-deposit NBFCs are required to send or submit the yearly statement of capital funds, risk assets, ratios, and so on. This can be done online or physically. Furthermore, capital adequacy, liquidity, and other disclosure standards have been incorporated into the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) directives, 2007.

CRAR

• Direct and indirect exposure to the reality sector.
• Asset and liability maturity patterns

NBFC Non-Deposit-SII allows ALM Returns to be filed.

• ALM-1- Short Term Dynamic Liquidity Statement-Monthly Dynamic Liquidity Statement- ALM-2- Systemic Liquidity- Half Annual Statement
• ALM-3- Declaration of interest rate vulnerability- Half a year

Furthermore, if you have already earned the NBFC License, as previously noted, you are obliged to comply with NBFC enforcement. Furthermore, noncompliance can result in harsh fines and possibly the closure of a corporation.

However, if you are having difficulty following up on NBFC compliance, you may call a Legalraasta specialist. We will handle all aspects of compliance for your Non-Banking Financial Company.

The following returns must be submitted by NBFCs-ND-SI:

• NBS-7: For NBFC-ND-SI, it is a quarterly statement of capital expenditure, projected asset risk, risk assets, and so on. As a result, you must install it on a quarterly basis.
• On a monthly basis, a return on the required financial criteria of the NBFCs-ND-SI should be submitted.

ALM Returns: ALM (Asset-Liability Management) Returns relate to the number of returns that NBFCs-ND-SI must send on a regular basis, as mentioned below:

• ALM Declaration [NBS-ALM1] Changing on a monthly basis.
• Structure of a property Half-year ALM Statement [NBS-ALM2].
• Interest Rate Sensitivity in ALM Format – [Statement [NBS-ALM3]: Half Yearly.
• Annual Assets Liability Mismatch Statement [ALM-YRLY]:
• Branch Data Recovery: All NBFCs-ND-SI are required to send branch information periodically.

Quarterly return on significant non-deposit financial metrics used by NBFCs with assets greater than Rs. 50 crores but less than Rs. 100 crores.

Non-deposit taking NBFCs having assets between Rs. 50 and Rs. 100 crores The fundamental information, such as firm name, address, NOF, and profit/loss, must be reported on a quarterly basis during the past three years.

If you are interested in getting an NBFC License, MUDS offers nbfc online registration process and nbfc p2p registration service. For more information, kindly visit our website.