RBI decides to simplify and rationalize the process of registration of
new NBFCs
Background:
It may be recalled that in the First Bi-monthly
Monetary Policy Statement – 2016-17, it was stated that in order to make the
process of registration of new NBFCs smoother and hassle free, it has been
decided to simplify and rationalise the process of registering new NBFCs. The
new application forms will be simpler and the number of documents required to
be submitted will be reduced to a minimum.
In order to make the process of registration of new NBFCs
smoother and hassle free, the application form for registration of new NBFCs
and the checklist of documents to be submitted have been revised. The number of
documents to be
Submitted by the NBFC applicants has been reduced from
existing set of 45 documents to 7-8 in the revised process.
Secondly, from now onwards,
there would be two different types of applications for non-deposit taking NBFCs
(NBFC-ND) based on Sources of Funds & Customer Interface as follows:
a. Type I – NBFC-ND not
accepting public funds1/ not intending to accept public funds in the
future and not having customer interface2/ not intending to have
customer interface in the future
b. Type II – NBFC-ND 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 processing of cases for Type I – NBFC-ND applicants would be on fast
track mode. As these companies will not have access to public fund and will not
have customer interface, they will be subjected to less intensive scrutiny / due
diligence. However, CoR issued to Type I – NBFC-ND companies will be
conditional. These companies will be prohibited from accessing public funds and
having customer interface. In case these companies intend to avail public fund
or intend to have customer interface in the future, they are required to take
approval from Reserve Bank of India, Department of Non-Banking Regulation.
Following forms have been
revised and uploaded on the RBI website-
a.
Application form
b.
Documents required for
registration as Type I – NBFC-ND
c. Documents required for registration as Type
II – NBFC-ND (including new applications of NBFC-MFI, NBFC-factor, NBFC-IDF)
Application form has been changed in the online COSMOS Application of
the Reserve Bank of India, except in the case of CIC-ND-SIs where a separate
application form has been prescribed. The application form mentioned above
shall be applicable to new applications of Type I – NBFC-ND and Type II – NBFC-ND
(including NBFC-MFI, NBFC-Factor and NBFC-IDF).
Furthermore, with the aim to centralise the process,
the application for new NBFCs may be submitted to Central Office, Department of
Non-Banking Regulation directly at the following address:
Chief General Manager
Department of Non-Banking Regulation
Reserve Bank of India
Centre I, World Trade Centre
Mumbai-400 005
Department of Non-Banking Regulation
Reserve Bank of India
Centre I, World Trade Centre
Mumbai-400 005
It is further advised that the checklists mentioned
are indicative and not exhaustive. The Reserve Bank, may, if necessary, call
for any further documents to satisfy itself on the eligibility of the company
seeking 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.
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