A Non-Banking Financial Company (NBFC) is a financial institution that provides various banking-like services such as lending and investment but does not hold a full banking license.

What is the 50-50 test for NBFCs?

To be classified as an NBFC, a company's financial assets must be more than 50% of its total assets, and income from these assets must be more than 50% of its total income.

What is the minimum capital (NOF) required?

As per the latest RBI regulations, the minimum Net Owned Fund (NOF) required for a new NBFC is ₹10 Crores (previously ₹2 Crores).

Can an NBFC accept deposits from the public?

Most new NBFCs are 'Non-Deposit taking'. To accept public deposits, an NBFC needs a specific 'Category A' license, which is currently granted very selectively by the RBI.

Can a Fintech startup be an NBFC?

Yes. Many Fintech companies either register their own NBFC or partner with existing ones to provide digital lending services.

Who is a 'Fit and Proper' director?

A director who has a clean financial record (no defaults), relevant experience in finance, and no criminal history is considered 'Fit and Proper' by the RBI.

What is the COSMOS portal?

COSMOS is the official online portal of the RBI where all NBFC-related applications and monthly/quarterly returns are filed.

How long does it take to get the NBFC license?

The entire process, from company incorporation to the grant of CoR by the RBI, typically takes 6 to 9 months.

Service

NBFC Registration Online | RBI NBFC License

Apply for NBFC registration with RBI. Expert guidance on net owned funds (NOF), director's eligibility, and the detailed RBI application process.

Entering the World of Structured Finance

Apply for NBFC registration with RBI. Expert guidance on net owned funds (NOF), director's eligibility, and the detailed RBI application process.

The gateway to the lending business. Get your Certificate of Registration (CoR) from the Reserve Bank of India to operate as a Non-Banking Financial Company.

The mandatory legal authorization from the Reserve Bank of India (RBI) to provide financial services like lending and investment. Launch your financial institution with our expert regulatory guidance.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act and engaged in the business of loans and advances, acquisition of shares/stocks/bonds, leasing, hire-purchase, insurance business, or chit business. Unlike traditional banks, NBFCs do not hold a full banking license and cannot accept 'Demand Deposits' from the public (with some exceptions for specific deposit-taking NBFCs).

NBFCs play a critical role in the Indian economy by providing credit to unbanked sectors, SMEs, and for specific purposes like vehicle or gold loans. Because they handle public funds and credit, the Reserve Bank of India (RBI) regulates them strictly under the RBI Act, 1934. The registration process is rigorous, focusing on the quality of management, the source of capital, and the viability of the business model.

QuickTaxperts provides end-to-end consulting for NBFC registrations. We assist in the company incorporation, help in the recruitment of directors who meet RBI's 'Fit and Proper' norms, and manage the entire application process on the RBI's COSMOS portal, including responding to detailed regulatory queries.

Category: Financial Services
Allows for systematic and legal lending to businesses and individuals.
Provides access to bank credit and capital markets for funding.
Mandatory for Fintech startups looking to provide their own loans.
Ensures professional management of financial risks.
Mandatory Certificate of Registration (CoR) from RBI
Minimum Net Owned Funds (NOF) requirement of ₹10 Crores (revised)
Requires high-level compliance and expert directors
Essential for providing loans, leasing, and hire-purchase services

Common Categories of NBFCs

Understand your business focus.

Investment and Credit (ICC): The most common type, providing loans and dealing in the acquisition of securities.
Infrastructure Finance: Specialized in providing long-term debt for infrastructure projects like power and roads.
Micro Finance (NBFC-MFI): Provides small loans to low-income groups, usually without collateral.
Account Aggregator: A non-lending NBFC that helps in sharing financial data between institutions.

Eligibility and applicability

We check applicability before filing so the selected registration, licence, or compliance route matches your facts.

Must be a Company registered under the Companies Act, 2013.
Must have a minimum Net Owned Fund (NOF) of ₹10 Crores (as per the new 2021 RBI scale-based regulation).
At least one-third of the Directors must have relevant experience in finance or banking.
Directors must meet the 'Fit and Proper' criteria (clean credit record, no criminal history).
The business model must be sustainable and focused on financial activities (50-50 test).

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

Mandatory Documents: Certificate of Incorporation and MOA & AOA.; Audited Financial Statements (for existing companies).; Statutory Auditor's Certificate regarding NOF and activities.; Detailed Profile and KYC of all Directors and Shareholders.; Experiential Certificates of Directors in the finance sector.; CIBIL/Credit reports of all Directors and Shareholders.; Highest Educational Qualification certificates of Directors.; Detailed 3-year Business Plan and Financial Projections.

Our NBFC Registration Workflow

Navigating RBI's licensing process in five steps.

Step 1: Entity Setup: Incorporating the company with the required capital and ensuring the MOA reflects 'NBFC' activities.
Step 2: NOF Infusion: Ensuring the minimum Net Owned Fund (₹10 Cr) is infused in the bank and obtaining a certificate from the Auditor.
Step 3: COSMOS Portal Filing: Filing the online application on the RBI's COSMOS portal and obtaining an application reference number.
Step 4: Physical Submission: Submitting the hard copy of the application and all supporting documents to the relevant Regional Office of the RBI.
Step 5: Scrutiny & Interview: Responding to RBI's technical queries and assisting the directors in preparations for a potential interview with the RBI officials.

Deliverables

After completion, we share organized acknowledgements, references, and next-step guidance for banking, renewals, or future filings.

RBI Certificate of Registration (CoR)
RBI COSMOS Portal Login Credentials
Fit and Proper Policy & Fair Practices Code templates
Ongoing Compliance Roadmap (Prudential Norms)

Expert review

NBFC Registration Online | RBI NBFC License content is reviewed by QuickTaxperts Financial Advisory, Banking & NBFC Consultants.

Checklist-led review
Document pre-verification
Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

What is an NBFC?: A Non-Banking Financial Company (NBFC) is a financial institution that provides various banking-like services such as lending and investment but does not hold a full banking license.
What is the 50-50 test for NBFCs?: To be classified as an NBFC, a company's financial assets must be more than 50% of its total assets, and income from these assets must be more than 50% of its total income.
What is the minimum capital (NOF) required?: As per the latest RBI regulations, the minimum Net Owned Fund (NOF) required for a new NBFC is ₹10 Crores (previously ₹2 Crores).
Can an NBFC accept deposits from the public?: Most new NBFCs are 'Non-Deposit taking'. To accept public deposits, an NBFC needs a specific 'Category A' license, which is currently granted very selectively by the RBI.
Can a Fintech startup be an NBFC?: Yes. Many Fintech companies either register their own NBFC or partner with existing ones to provide digital lending services.
Who is a 'Fit and Proper' director?: A director who has a clean financial record (no defaults), relevant experience in finance, and no criminal history is considered 'Fit and Proper' by the RBI.
What is the COSMOS portal?: COSMOS is the official online portal of the RBI where all NBFC-related applications and monthly/quarterly returns are filed.
How long does it take to get the NBFC license?: The entire process, from company incorporation to the grant of CoR by the RBI, typically takes 6 to 9 months.