NBFC Registration Checklist
                     What Are NBFC 
Registration Checklist?
Understanding NBFCs!
Non-Banking Financial Companies (NBFC) do not fall in 
the legal definition of Banks but they proffer banking 
facilities and financial services. It is a well-known fact 
that Banks are not able to cater to the financial needs of 
all Indians, however hard they try; therefore, more and 
more companies are applying for NBFC Registration. 
The functioning of NBFCs is regulated and monitored by 
the RBI in compliance with the provisions mentioned in 
Chapter III B of the RBI Act of 1934.
The segments which are largely served by the NBFCs 
are instruments of the capital and money markets such 
as stocks, bonds, along with hire-purchasing, deposits, 
leasing, insurance business, investment funds, and chit 
business and many more similar activities.
Soaring Popularity of 
NBFCs!
The ever-growing popularity of NBFCs lies in these 
characteristic features:
 RBI has eased the norms a great deal thus making 
NBFC incorporation simpler.
 The biggest advantage awarded to NBFCs is the 
flexibility to structure products as per the needs of 
the customer.
 NBFCs enjoy complete liberty to operate from 
anywhere and everywhere; in remotest of places to 
the most developed metros, thus attracting and 
capturing new customers.
 Low operative costs make sure that high profits come 
their way since inception.
 Taking full advantage of modern technological 
progress helps them not only target new customers 
but also help them ascertain their creditworthiness
Different Categories of 
NBFCs!
Type-I NBFC (NBFC-ND) are those which are not 
accepting public fun ds/ not intending to accept public 
funds in the future and not having customer interface/not 
intending to have customer interface in the future.
Type-II NBFC (NBFC-ND) are those which are accepting 
public funds/ intending to accept public funds in the 
future and/or having customer interface/intending to 
have customer interface in the future.
The RBI endorses that Type-I NBFCs shall be subjected to 
less intensive scrutiny or due diligence and the 
processing of such applications shall be put on the fast 
track for processing. However, they shall be barred from 
accessing the public funds or having customer interface.
Documents Checklist for 
NBFC Registration
The following documents will have to be submitted along with the 
prescribed application form:
 Copies of Certificate of Incorporation (COI) and Certificate of 
Commencement of Business.
 Copies of extracts of the main object clause in the MOA relating 
to the financial business.
 Board resolution declarations.
 Copy of Fixed Deposit receipt & bankers’ certificate of no lien 
indicating balances in support of Net Owned Fund.
 The Audited balance sheet and Profit & Loss account along with 
directors & auditors report or for the entire period the company 
is in existence.
 Banker’s report in respect of applicant company, its 
group/subsidiary/associate/holding company/related parties, 
directors of the applicant company having a substantial interest 
in other companies. The Banker’s report should be about the 
dealings of these entities with these bankers as a depositing 
entity or a borrowing entity.
“With the RBI easing the norms for 
registration of NBFCs, this is the most 
opportune time to go for it!”
-Shweta Gupta, Founder and CEO, MUDS
For more information visit: 
https://www.muds.co.in/nbfc-registration/
Thank You!