Reserve Bank of India has simplified the process of NBFC (Non-Banking Financial companies) registration. Now opening an NBFC becomes easy after RBI has reduced the number of papers from 45 to 8. That’s why the formalities of submitting papers have come down.
Now anyone can submit all the documents online, and if you wanna submit online, then the new applications for NBFCs have to be submitted to the Reserve Bank of India’s Non-banking Regulation Department in Mumbai.
In a statement RBI said-
The application form for the registration of new NBFCs has been revised to make the process smoother and hassle-free. The number of documents to be submitted by the NBFC applicants has also been reduced from existing 45 to 7-8.
Types of NBFC in India
There are two types of NBFC which are being licensed if all the required papers found ok. These are-
- NBFC accepting funds from the customers
- NBFC, which does not accept funds from the customers.
Here is the official tweet that comes after the announcement-
RBI decides to simplify and rationalise the process of registration of new NBFCs https://t.co/FsS4fPPUVz
— ReserveBankOfIndia (@RBI) June 17, 2016
But there is a term and condition where RBI may ask for more information or papers if it thinks the submitted papers are not enough to grant the license. There is nothing mentioned how RBI evaluates the eligibility of a company which files for the license of an NBFC in India. To get funds from overseas, you need to submit some extra documents.