Mumbai, May 21 UNI | 2 months ago

The Reserve Bank of India has simplified the documentation for Non-Banking Financial Companies (NBFCs).


Now, there will be a common application form for
Non-Banking Financial Companies (NBFCs), Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs), NBFC-Factors and Infrastructure Development Finance- Non-Banking Financial Companies (IDF-NBFCs).
The application form for Core Investment Companies (CICs) has been redesigned and there are two checklists of documents one for registration as Non-Banking Financial Company-International Finance Corporation (NBFC-IFC) and the other for registration as IDF-NBFC .

Further, while converting from an already registered NBFC
to IFC/ MFI/ Factor, the company can simply make an application for conversion on its letterhead accompanied by the original certificate of registration and all the documents as given in the checklist.
The Reserve Bank will, after scrutiny of documents, make a
suitable remark on the Certificate of Registration for having converted to the new status.
It is further advised that the Checklists mentioned are indicative and not exhaustive. The Reserve Bank can, if necessary, call for any further documents to satisfy itself on the eligibility for obtaining registration as NBFC.

In the event of the Reserve Bank calling for further
documents in addition to those mentioned in the checklist, the applicant company must respond within a stipulated time of one month failing which the application/request for conversion along with all the documents will be returned to the company for submission afresh with the required information/documents.

(Posted on 21-05-2014)