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RBI to simplify NBFC registration
DHNS
Last Updated IST
RBI to simplify NBFC registration
RBI to simplify NBFC registration

 The Reserve Bank of India (RBI) has decided to simplify and rationalise the process of registration of new non banking financial companies (NBFCs).

In order to make the process of registrating new NBFCs smoother and hassle-free, the application form and the checklist of documents to be submitted have been revised. The number of documents to be submitted by NBFC applicants has been reduced from the existing set of 45 documents to 7-8 in the revised process, RBI said.

 Secondly, from now onwards, there would be two different types of applications for non-deposit taking NBFCs (NBFC-ND), based on sources of funds and customer interface. These include NBFC-NDs not accepting public funds/ not intending to accept public funds in the future and not having customer interface/ not intending to have customer interface in the future; and NBFC-NDs accepting public funds/ intending to accept public funds in the future and/or having customer interface/intending to have customer interface in the future, RBI said.

 The processing of cases for Type I - NBFC-ND applicants would be on fast track mode. As these companies will not have access to public fund and will not have customer interface, they will be subjected to less intensive scrutiny / due diligence.

However, certificate of registration (CoR) issued to Type I - NBFC-ND companies will be conditional. These companies will be prohibited from accessing public funds and having customer interface. In case these companies intend to avail public fund or intend to have customer interface in the future, they are required to take approval from Reserve Bank of India, Department of Non-Banking Regulation, RBI said.

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(Published 17 June 2016, 23:23 IST)