Overview
NBFC Compliance
What is NBFC Compliance?
NBFC compliance refers to the mandatory legal, regulatory, and reporting obligations that a Non-Banking Financial Company must follow under the RBI Act, 1934, RBI Master Directions, and applicable provisions of the Companies Act, 2013. These compliances are designed to ensure financial stability, transparency, and protection of public interest.
Who Requires NBFC Compliance?
-NBFC compliance is mandatory for:
-RBI-registered NBFCs
-Deposit-taking and non-deposit-taking NBFCs
-Systemically Important (SI) and Non-Systemically Important NBFCs
-NBFC-MFIs, NBFC-Factors, NBFC-IFCs, NBFC-ICCs, NBFC-IDFs, etc.
Compliance applies regardless of business scale or profitability.
Why is NBFC Compliance Mandatory?
NBFCs deal with public funds and credit systems. Compliance is required to:
-Ensure financial discipline and risk management
-Protect depositors, borrowers, and investors
-Enable RBI supervision and control
Non-compliance may lead to heavy penalties, operational restrictions, cancellation of CoR, or RBI enforcement action.
Importance of NBFC Compliance
-Protects the RBI Certificate of Registration (CoR)
-Ensures uninterrupted lending and financial operations
-Builds confidence among regulators, lenders, and investors
-Prevents penalties, audits, and supervisory action
-Strengthens internal governance and risk controls
Eligibility & Regulatory Framework
To remain compliant, an NBFC must:
-Hold a valid RBI Certificate of Registration
-Maintain minimum Net Owned Fund (NOF) as prescribed
-Follow prudential norms, capital adequacy, and asset classification rules
-Comply with Fair Practices Code and KYC/AML norms
Process of NBFC Compliance with Nyayapath Legal
1. Compliance Gap Analysis
Assessment of existing RBI and statutory compliance status.
2. Documentation & Policy Review
Review of policies, returns, and statutory records.
3. Drafting & Advisory
Drafting RBI returns, policies, disclosures, and compliance reports.
4. Statutory & RBI Filings
Timely filing of returns with RBI and ROC.
5. Ongoing Monitoring & Updates
Continuous tracking of RBI circulars and regulatory changes.
Documents Required for NBFC Compliance
-RBI Certificate of Registration (CoR)
-Financial statements and audit reports
-Statutory registers and records
-KYC, AML, and Fair Practices policies
-Details of directors, shareholders, and management
-Loan and deposit records
Key NBFC Compliances
-Periodic RBI returns (NBS-1, NBS-2, NBS-3, NBS-4, etc.)
-Capital adequacy and NOF compliance
-Statutory audit and internal audit
-Board meetings and governance disclosures
-ROC annual filings
Why Choose Nyayapath Legal?
-Deep expertise in RBI regulations
-Accurate and timely regulatory filings
-Proactive compliance tracking
-Confidential handling of sensitive financial data
-Dedicated legal and regulatory support
