RBI LICENSING • CERTIFICATE OF REGISTRATION (CoR) • COMPANIES ACT 2013 • SCALE-BASED REGULATION
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013, engaged in the business of loans and advances, acquisition of shares, stocks, bonds, debentures, leasing, hire-purchase, insurance, or chit fund business. Unlike banks, NBFCs cannot accept demand deposits or issue cheques drawn on themselves, yet they play a critical role in expanding credit access across India.
No company can commence or carry on the business of a non-banking financial institution without obtaining a Certificate of Registration (CoR) from the Reserve Bank of India (RBI), as mandated under Section 45-IA of the RBI Act, 1934. With NBFCs now holding a growing share of India's credit and microfinance markets, registration is the foundational step for any entrepreneur looking to build a lending or investment business.
Every entity carrying on non-banking financial activity must hold a valid Certificate of Registration issued by the RBI before commencing operations.
Any entity carrying on lending, investment, or asset-financing activity as its principal business must register with RBI before commencing operations.
A company must satisfy the following structural, financial, and director-level conditions before RBI will consider its NBFC registration application.
Since October 2023, RBI classifies every registered NBFC into one of four regulatory layers based on size, activity, and risk perception.
Smaller, non-deposit taking NBFCs with lighter regulatory requirements
Deposit-taking NBFCs and larger non-deposit NBFCs above ₹1,000 crore asset size
Top 25-30 NBFCs by size, subject to enhanced, bank-like regulation
Reserved category for NBFCs posing significant systemic risk, at RBI's discretion
Register a Private or Public Limited Company under the Companies Act, 2013
Deposit the minimum Net Owned Fund as fixed deposit in a scheduled bank
Prepare director KYC, net worth certificates, and 3-year business projections
Submit application on RBI's COSMOS portal along with the requisite documents
Respond to RBI queries and provide additional information as sought
Receive the CoR from RBI and commence non-banking financial operations
90–180 Working Days
For RBI Certificate of Registration₹2 Crore+
Higher for specialised categoriesQuarterly & Annual
NBS returns & statutory auditsA company must maintain a minimum Net Owned Fund (NOF) of ₹2 crore to register as an NBFC-Investment and Credit Company. Specialised categories such as Housing Finance Companies, Infrastructure Finance Companies, and Core Investment Companies have higher prescribed NOF thresholds under RBI norms.
The RBI Certificate of Registration typically takes between 90 to 180 working days, depending on the completeness of documentation, the category applied for, and the volume of clarifications sought by RBI during scrutiny.
Yes. A company must first be incorporated under the Companies Act, 2013 as a Private or Public Limited Company. Once incorporated and the required capital is infused, it can apply to RBI for the Certificate of Registration.
Deposit-taking NBFCs (NBFC-D) are permitted to accept public deposits subject to strict RBI norms on credit rating, CRAR, and deposit acceptance limits. Non-deposit-taking NBFCs (NBFC-ND) rely on their own funds, borrowings, and market instruments rather than public deposits.
Carrying on non-banking financial business without a valid Certificate of Registration is a violation of Section 45-IA of the RBI Act, 1934, and can attract penalties, prosecution, and directions to cease operations from the Reserve Bank of India.
Specialised team with deep knowledge of RBI Act norms and scale-based regulation
End-to-end preparation of RBI-compliant business plans and financial projections
Streamlined documentation and COSMOS filing to minimise RBI queries and delays
From incorporation to CoR issuance and ongoing RBI compliance — complete assistance
Get your Certificate of Registration from RBI with expert, end-to-end NBFC registration assistance.
