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NBFC License

RBI approval & licensing experts at WeConsult India — bridge the gap between your financial vision and RBI’s stringent regulatory framework.

Under Companies Act 2013Regulated by the RBIMinimum Net Owned FundNo demand deposits
Overview

NBFC registration

Unlock institutional lending capabilities. A Non-Banking Financial Company acts as a catalyst in the financial ecosystem, providing specialised credit and investment services — loans, asset financing, investment services and microfinance — across India.

Compliant with the Reserve Bank of India Act 1934, WeConsult India provides complete assistance for hassle-free registration with end-to-end compliance support. Unlike traditional banks, NBFCs cannot accept demand deposits and don’t form part of the standard payment and settlement system.

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What an NBFC Does

  • Loans & advances
  • Infrastructure finance
  • Microfinance
  • Investment services
  • Asset financing
  • Leasing & hire purchase
Why It’s Required

Why NBFC registration is required

To operate a financial institution in India, navigating the regulatory landscape is a legal prerequisite. Operating a finance business without explicit RBI approval is strictly illegal and subject to severe penalties.

Key reasons

  • Compulsory RBI approval for financial activities
  • Full compliance with financial regulations
  • Market credibility & institutional trust
  • Protection of public & investor interest
  • Enables highly structured financial operations
Categories

Types of NBFCs in India

Investment & Credit (ICC)

The cornerstone of the sector — structural credit and investment facilities for modern enterprise scaling.

Micro Finance

Grassroots financial inclusion and collateral-free lending.

Asset Finance

Specialised capital for vehicles, machinery and equipment acquisition.

Infrastructure Finance (IFC)

Supporting national-scale projects with long-term debt structures.

Peer to Peer (P2P)

Platform-based lending connecting individual borrowers and lenders.

Account Aggregator / Mortgage Guarantee

Specialised models for data aggregation and mortgage-guarantee services.

Eligibility

Minimum requirements for NBFC registration

The RBI follows a rigorous verification process — ensure your entity meets these five fundamental benchmarks before applying.

1

Corporate Structure

Must be incorporated as a Private or Public Limited Company under the Companies Act.

2

Net Owned Fund (NOF)

Maintain a minimum NOF of ₹2 Crore (or as specifically prescribed by RBI for your category).

3

Credit Compliance

Directors and shareholders must possess a clean credit history with no defaults.

4

Professional Management

Appointment of qualified directors with relevant finance and banking experience.

5

Strategic Business Plan

Submission of a comprehensive operational roadmap and financial projections for RBI review.

Documents

Essential dossier

A zero-error documentation strategy for successful incorporation, prepared as per current RBI norms.

  • Certificate of Incorporation
  • Memorandum & Articles (MOA/AOA)
  • PAN Card (company & directors)
  • KYC dossier of directors
  • Bank account statements
  • Net worth certificate (CA certified)
  • Comprehensive business plan
  • Board resolutions
  • Audited financial statements
Process

NBFC registration process

1

Company Incorporation

Register your entity as a Private or Public Limited company under the Companies Act.

2

Capital Arrangement

Ensure the minimum Net Owned Fund (NOF) requirement of ₹2 Crore is met and maintained.

3

Dossier Preparation

Detailed drafting of your business plan, financial projections and director profiles.

4

Online Application

Formal filing through the official RBI COSMOS portal with all required proofs.

5

RBI Verification

A rigorous review where the RBI examines your application and seeks clarifications.

6

License Issuance

The RBI issues the Certificate of Registration (CoR), authorizing your operations.

Post-Registration Compliance

  • RBI reporting requirements & annual returns
  • Statutory audit execution
  • KYC & anti-money laundering
  • Fair Practices Code adherence
  • Prudential regulatory norms

Continuous compliance is mandatory to avoid severe regulatory penalties.

Strategic Benefits

  • Legal authorization for finance
  • Higher market credibility
  • Access to institutional funding
  • Regulated financial operations
  • Scalable business model & competitive lending edge
FAQs

Frequently asked questions

Is RBI approval mandatory for NBFC?

Yes — a Certificate of Registration (CoR) from the RBI is compulsory under Section 45-IA of the RBI Act 1934 before commencing any non-banking financial operations.

What is the minimum capital required for an NBFC?

A minimum Net Owned Fund of ₹2 Crore (or as specifically prescribed by RBI for your category).

How long does NBFC registration take?

It varies — the RBI follows a rigorous, multi-stage review; we manage follow-ups to keep it moving.

Can an NBFC accept deposits like banks?

No — NBFCs cannot accept demand deposits and don’t form part of the standard payment and settlement system.

Why WeConsult

Why businesses choose us for this

Specialist expertise

Professionals who handle NBFC licensing every day — so it's done right the first time.

Fast & transparent

Clear timelines, clear pricing and no hidden surprises from start to finish.

Real support

A responsive team you can actually reach whenever you have a question.

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