How to do NBFC Registration in India
In past few years, the NBFCs have become the prime source of raising fund. It is considered as one of the fast-growing business in India. The services of an NBFC is similar to that of the banks say banking services like accepting deposits, giving cash advances, intermediation, leasing, hire purchase and much more. A NBFC registration is done under very stringent rules and regulations of the RBI Act. It is nowadays recognized as an important segment of Indian economy.
Basic Requirements of NBFC Registration in India
- Paid up capital of Rs 2 Crore.
- Can hold the deposit for the Minimum period of 12 months (1 year), and the maximum period it can hold for is of 60 months (5 years).
Definitely, patients to let your business breathe and grow
The Market Scenario for NBFC Registration
NBFC registration is considered to be a rapidly growing business vertical nowadays. It is primarily categorized into Asset finance companies, Loan Companies, and investment companies. A company which is registered under the Companies Act 2013 and engaged in such a business can apply to be a NBFC registration to RBI. However, it is a must condition that all financial transactions in business should be more than 50% of its own capital in any year. The so desirous company must have a total capital of Rs. 2 Crore. The NBFC willing to register itself shall submit the prescribed application form along with the all necessary documents to the Reserve Bank of India. A NBFC registration is required to meet all the conditions mentioned in the Section 45-IA of the RBI Act of 1934 only after which NBFC registration certificate is granted to the applicant company.
In India there are a lot of banks, however, certain areas are still untouched, and no banking facilities are available there, this consequently has resulted into the enhanced demand for availing loans from NBFC and ultimately more number of NBFC registration. NBFC incorporation has taken a boom in past few years.
Non-Banking Financial Companies (NBFCs) has managed to attract considerable stake of the business market in banking and banking-related services. NBFCs are engaged in the business similar to a bank but do not cover everything that a bank is indulged into.
NBFC can raise funds from the public, directly or indirectly, and can freely lend them to ultimate spenders.