Complete Guide to NBFC Registration Process in India
Non-Banking Financial Companies, commonly known as NBFCs, play a crucial role in strengthening the financial system of India. They provide various financial services such as loans, asset financing, investment services, and credit facilities to individuals and businesses. Although NBFCs offer services similar to banks, they operate under a different regulatory framework. If you are planning to start a financial services business, understanding the NBFC registration process is essential. What is an NBFC? An NBFC is a company registered under the Companies Act that is engaged in financial activities such as providing loans, advances, acquisition of shares, leasing, hire purchase, insurance business, or chit business. However, NBFCs cannot accept demand deposits like traditional banks and do not form part of the payment and settlement system. In India, NBFCs are regulated by the Reserve Bank of India under the Reserve Bank of India Act, 1934. Registration with the RBI i...