Practice Areas · Advisory & Growth · RBI & Finance · RBI registrations · NBFC

NBFC Registration

RBI registration to carry on financial activity as a Non-Banking Financial Company.

Overview

What an NBFC is

A Non-Banking Financial Company is a company registered with the Reserve Bank of India to carry on financial activity — lending, investment, or asset finance — without being a bank.

Registration under Section 45-IA of the RBI Act, 1934 is mandatory. The company must be incorporated, hold the prescribed Net Owned Funds, and its directors and promoters must meet the RBI's fit-and-proper criteria.

Whether a company is an NBFC is tested by its principal business — broadly, financial assets above 50% of total assets and financial income above 50% of gross income.

Requirements

What registration requires

Entity & capital

  • A company incorporated under the Companies Act
  • Minimum Net Owned Funds of ₹2 crore — being raised to ₹10 crore in phases by 2027 for most categories
  • Directors and promoters meeting the RBI's fit-and-proper criteria

Principal business test

  • Financial assets above 50% of total assets, and financial income above 50% of gross income
  • A clear business plan for the financial activity proposed
Documents

Documents you'll need

  • Certificate of incorporation, MOA, and AOA
  • Proof of Net Owned Funds and audited accounts
  • Directors' and shareholders' KYC and fit-and-proper declarations
  • A detailed business plan and projections
  • Banker's report on the company and directors
Process

How registration works

  1. 01

    Incorporate and capitalise

    Incorporate the company and build the required Net Owned Funds.

  2. 02

    Apply to the RBI

    File the application on the RBI's COSMOS portal with the documents, and submit the physical set to the regional office.

  3. 03

    RBI review

    The RBI examines the application, the fit-and-proper criteria, and the business plan.

  4. 04

    Certificate of Registration

    On approval, the RBI grants the Certificate of Registration to operate as an NBFC.

Why PBT

Why work with PBT

PBT advises on the structure and manages the NBFC application end to end.

  • We confirm eligibility and the right NBFC category for your activity
  • We structure the entity and the Net Owned Funds
  • We prepare the business plan and the RBI application
  • We respond to the RBI's queries through the process
  • Scope and fees agreed in writing up front
FAQs

Frequently asked questions

  • What is an NBFC?

    A company registered with the RBI to carry on financial activity — lending, investment, or asset finance — without being a bank.

  • What Net Owned Funds are required?

    A minimum of ₹2 crore, being raised to ₹10 crore in phases by 2027 for most categories.

  • How is NBFC status determined?

    By the principal-business test — broadly, financial assets above 50% of total assets and financial income above 50% of gross income.

  • How long does it take?

    RBI processing typically takes several months from a complete application.

Register your NBFC

Tell us about the financial activity you plan, and we'll advise on structure and manage the RBI registration.

Send an enquiry

This page describes the nature of the firm's services and is not a solicitation or legal advice. Thresholds, timelines, and applicable registrations depend on your specific facts; engagement terms and fees are agreed in writing per assignment.

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