NBFC Compliance

Non-Banking Financial Companies, or NBFCs, are businesses that are registered under the Companies Act of 2013 and engaged in the receipt of deposits, advances, and loans as well as the acquisition of stock, shares, and bonds, as well as debentures and government-issued securities. NBFCs are actively engaged in financial activities and are registered with the Reserve Bank of India. NBFCs are not allowed to conduct business without a licence from the Reserve Bank of India, or RBI.

For NBFCs, RBI compliances have recently become increasingly challenging. Previously, NBFCs—Non-Banking Financial Companies—had an advantage over banks. NBFC compliance requirements were also extremely straightforward and lax, but after the Sahara case, the RBI revised these requirements and began to regulate NBFCs as part of their screening process. Securitization of Standard Assets and Guidelines for Private Placement of NBFCs are two examples of important rules and regulations. The RBI is continuing to make steps and try to prevent theory in NBFCs.

Types of Returns

Returns By Deposit Taking NBFC

• NBS-1

  Quarterly returns required for the purpose of capturing financial information such as Components of assets and Liability, Profit and Loss Account.

• NBS-2

  Quarterly Return as per the prudential norms. The purpose of this return is to get information about several norms such as asset Classification, NOF, Capital Adequacy, Provisioning, and so on.

• NBS-3

  Quarterly Return on liquid assets and such norms are required to capture information about statutory funds and investment in Liquid states.

• NBS-4

  Annual return of critical parameters. The purpose of filing this return is to capture the repayment status of the rejected NBFCs which are accepting public deposits.

• NBS-6

  This form needs to be submitted as Monthly return on picture to capital market by NBFC deposit-taking with the value of the total assets of Rs. 100 crore or more than that..

• ALM return

  These returns have to be filed as Half-yearly by NBFC which are holding Public Deposit with the amount more than Rs. 20 Crore or size of the asset more than Rs.100 Crore.

  1. This return needs Audited Balance Sheet and authorized Auditor’s Report by NBFC accepting public deposits, to be submitted;

  2. Return related to branch details