What is Non-Banking Financial Company (NBFC)?

NBFC or non-banking financial corporation is a specific type of company that deals with finance and offers shadow banking services to their clients without having a banking license. The following video express complete process for NBFC Registration its requirements & documents: 

In India, NBFC companies are strictly registered as per the rules, provision, and regulations of the Section 45-IA of the RBI Act of 1934.  NBFC License can be categorized broadly into two types. One is based on the nature of the activity of the company and the other is on deposits

Basic Requirements  for NBFC Registration with RBI

1. Should be a Company Registered with Companies Act, 2013
2. Minimum net Owned Funds should be not less than 200 Lakhs ( 2 Crore )
3. Sound Profile of Promoters, It is advisable to include Professionals like Company Secretaries, Chartered Accountants having experience in NBFC Activities.
4. NBFC Cannot accept deposits unless it is permitted by RBI, NBFC’s accepting deposits will be known as Deposit-taking NBFC.