RBI compliance for NBFCs
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RBI compliance for NBFCs
RBI has issued master direction for Non Banking Financial companies – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, NBFC is engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).
Difference Between Bank and NBFC when they both are doing similar function ?
- NBFC can not accept demand deposit.
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
- Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
Different Categories of NBFCs Registered with RBI: NBFCs categories in the terms of type of liabilities such as Deposit and Non-Deposit accepting , Non deposit taking NBFCs by their size and third is by the kind of activity they done. Different type of NBFCs within the board categorization:
- Asset Finance Company (AFC)
- Investment Company (IC)
- Loan Company (LC)
- Infrastructure Finance Company (IFC)
- Systemically Important Core Investment Company (CIC-ND-SI)
- Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC
- Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI)
- Non-Banking Financial Company – Factors (NBFC-Factors)
- Mortgage Guarantee Companies (MGC)
- NBFC- Non-Operative Financial Holding Company (NOFHC)
Returns to be submitted by NBFCs:
I. Forms of Periodical Returns to be submitted by all Non-Banking Financial Companies accepting / holding public deposits having asset size above Rs.. 100 crores or having public deposits of Rs.. 20 crores and above: ALM (Half yearly return)
NBS6_REV (Monthly return on exposure to sensitive sectors)
II. Forms of Periodical Returns to be submitted by all Non-Banking Financial Companies accepting / holding public deposits, and MNBCs – except Residuary Non-Banking Companies: CA certificate for NBS 4
CEO and CA certificate for NBS 2
NBS3_REV (Quarterly Return on Statutory Liquid Assets)
NBS4 (Annual Return on Repayment of Deposits only in respect of rejected/cancelled companies)
NBS1_REV (Quarterly Return on Important Financial parameters)
NBS2_REV (Quarterly Return on CRAR, Risk assets, Exposure to group companies etc.)
III. Forms of Periodical Returns to be submitted by all Residuary Non-Banking Companies: Quarterly Return I
NBS1A (Annual Return on Deposits)
NBS3A (Quarterly Return on Statutory Liquid Assets)
IV. Forms of Periodical Returns to be submitted by all NBFC-NDSIs: NDSI_500CR_REV (monthly return on Balance sheet, Profit & loss ac., exposure to sensitive sectors)
CEO and SA certificate for NBS 7
ALM_YRLY (Annual Return)
ALM_SL_IRS (Half yearly return)
NBS7_REV (Quarterly Return on CRAR, Risk assets, exposure to group companies)
V. Miscellaneous forms: BRANCH_INFO (Quarterly return to be submitted by all NBFCs)
Form – Schedule ‘A’
Special Return (Please see letter DNBS(PD)CC. No. 8/02.01/98-99 dated January, 1999) (To be submitted by all NBFCs whether holding public deposits or not)
SCRC_REV (Quarterly statement on assets acquired, securitized and reconstructed to be submitted by all SCRCs)
VI. NBS-8: NBS-8 (Annual return to be submitted by NBFCs having asset size between Rs. 100 to Rs. 500cr)
VII. NBS-9: NBS-9 (Annual return to be submitted by NBFCs having asset size below Rs. 100cr)