RBI Compliance (NBFC)

Ensuring Regulatory Adherence for Non-Banking Financial Companies

Non-Banking Financial Companies (NBFCs) play a crucial role in India’s financial ecosystem, but they operate under stringent regulatory oversight from the Reserve Bank of India (RBI). Compliance is not just a legal obligation—it’s essential for maintaining operational licenses, avoiding penalties, and building stakeholder trust.

At Rajesh Jalan & Associates, we provide end-to-end RBI compliance services for NBFCs, helping you navigate the complex regulatory landscape with confidence. Our team ensures your business adheres to all RBI directives, reporting requirements, and prudential norms, so you can focus on growth without compliance worries.

Who Needs RBI Compliance?

  • Deposit-Taking NBFCs – Companies accepting public deposits
  • Non-Deposit Taking NBFCs – Investment, loan, and asset finance companies
  • Systemically Important NBFCs – NBFCs with asset size ≥ ₹500 Crore
  • Microfinance Institutions (MFIs) – NBFC-MFIs regulated under RBI’s MFI guidelines
  • Peer-to-Peer (P2P) Lending Platforms – NBFC-P2P registered with RBI
  • Core Investment Companies (CICs) – NBFCs primarily engaged in acquisition of shares and securities
  • Housing Finance Companies (HFCs) – NBFCs regulated by NHB and RBI

Our RBI Compliance Services for NBFCs

NBFC Registration & Licensing

  • Initial Registration: Assistance with NBFC registration (CORE system) and obtaining Certificate of Registration (CoR) from RBI
  • Change in Management/Control: Filing applications for change in directors, shareholders, or management control
  • Branch Expansion: Approvals for opening new branches or shifting registered offices
  • Conversion Applications: Support for converting to/from NBFC, bank, or other financial entities

Prudential Norms Compliance

  • Capital Adequacy Ratio (CAR): Ensuring minimum CAR of 15% (or 12% for certain categories)
  • Liquidity Risk Management: Monitoring liquidity coverage ratio (LCR) and net stable funding ratio (NSFR)
  • Asset Classification & Provisioning: NPA classification (0-90 days past due) and provisioning norms
  • Concentration of Credit/Investment: Ensuring exposure limits (single borrower: 15%, group borrower: 40%)
  • Related Party Transactions: Monitoring and reporting transactions with related parties

Internal Audit & Risk Management

  • Internal Audit Framework: Designing and implementing RBI-compliant internal audit systems
  • Risk Management Policy: Drafting and reviewing risk management frameworks
  • Credit Risk Assessment: Evaluating credit appraisal, monitoring, and recovery processes
  • Operational Risk: Identifying and mitigating risks in processes, systems, and people
  • Cybersecurity & IT Risk: Ensuring compliance with RBI’s cybersecurity framework

Fair Practices Code & Customer Protection

  • Fair Practices Code (FPC): Drafting and implementing FPC as per RBI guidelines
  • Customer Grievance Redressal: Setting up grievance redressal mechanisms and reporting to RBI
  • Transparency in Lending: Ensuring clear communication of terms, interest rates, and charges
  • KYC/AML Compliance: Implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) policies

Compliance for Systemically Important NBFCs

For NBFCs with asset size ≥ ₹500 Crore:

  • Enhanced Corporate Governance: Board composition, committees, and fit & proper criteria for directors
  • Stress Testing: Conducting periodic stress tests for credit, market, and liquidity risks
  • Disclosure Requirements: Enhanced disclosures in financial statements and public domain
  • Internal Capital Adequacy Assessment Process (ICAAP): Documenting and submitting ICAAP reports

Compliance for Housing Finance Companies (HFCs)

  • NHB & RBI Dual Compliance: Ensuring adherence to both NHB and RBI regulations
  • Housing Loan Regulations: Monitoring LTV ratios, risk weights, and prepayment charges
  • Securitization & Assignment: Compliance with guidelines for loan transfers and securitization

Compliance for Microfinance Institutions (NBFC-MFIs)

  • Pricing Guidelines: Ensuring interest rates and processing fees are within RBI caps
  • Loan Disbursement Norms: Monitoring loan amounts, tenures, and repayment schedules
  • Collection Practices: Ensuring fair and transparent recovery mechanisms
  • Portfolio Diversification: Maintaining geographic and sectoral diversification

Regulatory Reporting & Filings

We ensure timely and accurate submission of all mandatory RBI returns:

 
Return
Form
Frequency
Due Date
Basic Information
NBS-1
Quarterly
15 days from quarter-end
Capital Adequacy
NBS-2
Quarterly
15 days from quarter-end
Liquidity Statement
NBS-3
Quarterly
15 days from quarter-end
Asset-Liability Management
NBS-4
Half-Yearly
30 days from half-year end
Large Exposures
NBS-5
Quarterly
15 days from quarter-end
Fraud Reporting
FMR-1
As and when
Within 21 days of detection
Audited Financials
NBS-6
Annual
Within 3 months of AGM

Key RBI Circulars & Guidelines We Monitor

  • Master Direction – NBFCs Acceptance of Public Deposits (RBI/2016-17/26)
  • Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking and Deposit taking (RBI/2016-17/27)
  • Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking (RBI/2016-17/28)
  • Master Direction – NBFC – Peer to Peer Lending Platform (RBI/2017-18/45)
  • Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022
  • Guidelines on Fair Practices Code for NBFCs
  • Cyber Security Framework for NBFCs
  • Large Exposures Framework and Risk Management

Why RBI Compliance is Non-Negotiable

Risk
Consequence of Non-Compliance
Penalties
Monetary fines up to ₹5 Crore or more
Business Restrictions
Stoppage of new loans, branch expansion freezes
License Cancellation
Revocation of Certificate of Registration (CoR)
Reputational Damage
Loss of customer and investor confidence
Legal Action
Prosecution of directors and management

Our Compliance Process

  • Gap Analysis: Reviewing your current processes against RBI requirements
  • Documentation: Preparing policies, manuals, and compliance checklists
  • Implementation Support: Assisting in rolling out new processes and systems
  • Training: Conducting workshops for your team on RBI norms
  • Ongoing Monitoring: Regular reviews to ensure continuous compliance
  • Reporting: Preparing and submitting all required returns to RBI

Why Choose Rajesh Jalan & Associates?

  • RBI Compliance Experts: Deep understanding of NBFC regulations and RBI expectations
  • Proactive Approach: We monitor regulatory updates and inform you of changes before deadlines
  • Customized Solutions: Tailored compliance frameworks for your specific NBFC category
  • End-to-End Support: From registration to ongoing compliance and audit support
  • Strong Relationships: Experience in liaising with RBI regional offices and handling inspections
  • Confidential & Ethical: Your data and business information are handled with utmost confidentiality

Get Started with RBI Compliance

Don't let compliance gaps risk your NBFC's operations. Partner with us for seamless RBI adherence.

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Helping NBFCs across India maintain seamless RBI compliance since 2007 — because regulatory adherence is the foundation of financial trust.