NBFC Compliance Annual

Non-Banking Financial Firms are registered under the 2013 Companies Act and are engaged in the business of collecting deposits, loans and advances, buying stocks/bonds/shares, government-issued debentures, and securities.

  • Annual Tracker on Compliance
  • Creation of the Practice of Equal Code in Business
  • Annual Balance Sheet Analysis
  • Annual Filing for Return
  • RBI Liaising
  • Report of Annual Conformity to the Board of Directors

Apply Now!

Apply Now!

NBFC Compliance : Overview

RBI compliance for NBFCs has been more complicated lately. There used to be a time when banks enjoyed benefits from non-banking financial firms. There was a moment when compliance with NBFCs was much easier and lenient, but RBI drafted new compliance for NBFCs after the Sahara case and kept them under screening. Securitization of standard assets and instructions for a private placement of NBFCs are a portion of the important regulations. RBI continues to bring forward attempts to resist theory in NBFCs.

Non-Banking Financial Firms are registered under the 2013 Companies Act and are engaged in the business of collecting deposits, loans and advances, buying stocks/bonds/shares, government-issued debentures, and securities. The NBFCs are actively engaged and registered in the financial operations of the Reserve Bank of India. Without getting a license from the Reserve Bank of India, no NBFC can run its business.

NBFC Description Annual Checklist on Compliance

The annual NBFC compliance checklist defines the NBFC compliance due date and returns that every NBFC is required to file. The list is rendered according to the RBI guidelines and master directions.

Non-banking financial companies must comply with the compliance later mentioned in this blog, as per the Non-Banking Financial Company Returns (Reserve Bank) Instructions, 2016.

Types of NBFCs on the Basis of Activities and Liabilities

Based on Liabilities

Based on Activities

Procedure to obtain NBFC Annual Compliance

Step 1: Take to our team

We are just a call or message away! Call or WhatsApp us on 8750008881 for a free meeting about this service with our team of experts. You can also email us at [email protected].

Step 2: Filling the application

Accuracy is a specialty of ours! After the paperwork has been completed, we will not waste time preparing and filing your submission. We will share the acknowledgment with you once it has been filed.

Step 3: Qualified team

We know your company needs! We align a specialist to ensure that you address your company’s enforcement criteria and comprehensive assistance in the process in depth.

Step 4: Submit all your documents

Exactness guarantees timelines!

Our team warrants report free of hassle. To guarantee timely filing and distribution, we collect the necessary documents and exchange the appropriate drafts.

Step 5: Comprehensive Details

Holding you updated is our duty!

We are pleased to keep you updated about the status of your application until it is done. You are brought to your attention to every creation of your application.

Step 6: Application finally submitted successfully

After the collection of all the documents and its verification is done then the application is finally submitted online. We deliver what we commit!

Key NBFC Compliance Checklist for Non-Deposit and Deposit Company

Below we have compiled an annual NBFC compliance checklist for every Non-Deposit and Deposit Company. See below:

S.No. Particulars Time Limit
Annual Compliances
1. Undiscovered March Return / NBS-7 Return On or before 30th June
2. Statutory Auditors Certificate of Income and Assets On or before 30th June
3. Details of companies with FDI or Foreign Funds On or before 30th June
4. Inspected return for March / NBS-7 Upon completion
5. The audited file of annual balance and P&L Account One month from the date of signoff
6. Reconciliation of a Public Deposit Rejection Before the commencement of the new Financial year
7. Announcement of Auditors to Annual Audit Company Annual basis
Monthly Compliance
1. Monthly Return By the 7th of each month
2. Upload Monthly Return By the 7th of each month
Periodical Compliances
1. Appointment of Director (Appendix-III) Within 30 days of appointment
2. Resignation of Director that is DIR-12 + Challan report That too in 30 days of appointment
3. Receipt of any notice at the next Board Meeting and filing a certified copy with the RBI

Return and Compliance of NBFC Registered with the RBI

According to Master Direction [1] – The NBFC-NDs-SI and NBFC-SI deposit company must file the following refunds as set out below:

Deposit NBFCs are required to submit the following refunds:

Submissions of Annual Statements and Returns

NBFC Non-deposit type is needed to send or submit the annual statement of capital funds, risk assets, ratio, etc. it can be submitted either digitally or physically. Moreover, capital adequacy, Liquidity, and other disclosure norms have been consolidated in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) directions, 2007.


  • Exposure to the reality sector both direct and indirect.
  • Maturity Patterns for assets and liabilities.

  • ALM Returns are allowed by NBFC Non-Deposit-SII to be submitted

  • ALM-1- Short Term Dynamic Liquidity Statement-Monthly Dynamic Liquidity Statement-
  • ALM-2- Short Term Statement, Systemic Liquidity- Half Annual Statement
  • ALM-3- Declaration of vulnerability to interest rates- Half a year

  • Moreover, if you have already obtained the NBFC License, as mentioned above, you are expected to comply with NBFC enforcement. In addition, the effects of non-compliance can lead to severe fines and even to the business being shut down.

    However, if it is challenging for you to follow up on NBFC compliance, you can contact the Legalraasta consultant. We will take full care of your Non-Banking Financial Company’s compliance.

    NBFCs-ND-SI is Required to Submit the following Returns

  • NBS-7: It is a quarterly statement of capital expenditure, estimated asset risk, risk assets, etc., for NBFC-ND-SI. Therefore, you need to install it quarterly.
  • A monthly return on the required financial parameters of the NBFCs-ND-SI should be submitted on a monthly basis.

  • ALM Returns: ALM (Asset-Liability Management) Returns refers to the number of returns that must be submitted by NBFCs-ND-SI from time to time as described below:

  • ALM Statement [NBS-ALM1] Changing Temporary: Monthly.
  • Property structure ALM Statement [NBS-ALM2]: Half Annual.
  • Interest Rate Sensitivity in ALM format – [Statement [NBS-ALM3]: Half Annual.
  • Assets Liability Mismatch Statement [ALM-YRLY]: Annually.
  • Branch Data Recovery: All NBFCs-ND-SI must submit branch information on a quarterly basis.

  • Quarterly return on substantial non-deposit financial parameters taken by NBFCs holding assets above Rs. 50 crores and higher but below Rs. 100 crores.
    Non-deposit taking NBFCs with an asset size around Rs. 50 crores and Rs. 100 crores The basic details must be submitted periodically over the last three years, such as company name, address, NOF, and profit/loss.

    Additional Compliances

    In addition to the above compliances, there are several other compliances under the provisions of the Companies Act, 2013 that must be observed by all NBFCs PAN-India, which are as follows:

  • ADT-1, Auditor’s Appointment
  • Book and Account Maintenance
  • Holding the Regulatory Registers
  • Drawing up the financial statements
  • Statutory Meetings Convene
  • ITR (Income Tax Returns) Filings
  • AOC-4, Financial Statements Filing
  • MGT-7, Filing Annual Reports ROC (Registrar of Companies)
  • RBI Notification Applicable on NBFCs

    Compliance that applies to the whole NBFC regardless of the following functions:

    Also, any changes or amendments made by Apex Bank to the guidelines provided above will be notified by the Reserve Bank of India within 1 month from the date of the change or amendment.

    Prudential Regulations

    In addition to the above-mentioned compliance with RBI for NBFCs with PAN-India registration, there are some other regulations provided by RBI referred to in Chapter IV of the Master Director. These laws are referred to as the Prudential Regulations. Again, it is mandatory for any NBFC to comply with the regulations as follows:

    Why Choose Legal Raasta

    30+ Offices in India
    10+ Years Experience
    Economical and Fast
    Money Back Guarantee


    Frequently Asked Questions

    Asset Finance Company, Investment Company, Infrastructure Finance Company, Housing Finance Company, Micro Finance Company, etc. are different forms of NBFC. For a layperson, NBFC is a financial firm that offers banking services of a different kind but does not have a banking license.

    For example, non-depositing NBFCs have no requirement for a cash reserve ratio (CRR), nor are they required to maintain a statutory liquidity ratio (SLR). Banks are expected, on the other hand, to maintain a CRR on which they earn no interest and a 24 percent SLR.

    NBFCs usually collect capital from banks or sell business documents to fund-raise mutual assets. They loan these funds to small and medium businesses, retail customers, etc.

    Within the framework of the Reserve Bank of India Act of 1934, the function and activities of NBFCs are regulated by the Reserve Bank of India (RBI).

    Banks are BFCs (Banking and Financial Companies) where, if you are confused, LICI (LIC of India) is an NBFC. The bank deals primarily with deposit and lending matters, while LIC provides the beneficiary with life insurance cover.

    NBFC is a non-banking financial institution operating in rustic regions with capabilities such as banks without banks. At a smaller level than NBFC, MFI reflects miniaturized scale account establishments and work. MFI offers the marginalized segments of the general population no credit.

    Systemically Significant Non-Deposit Taking (NBFC-NDSI) is defined by not tolerating/holding open stores and having all Rs capital as a non-banking financial firm. The evaluation example consisted of those banks with a size well beyond 2% of GDP.

    Services including loans and credit facilities, currency exchange, retirement planning, money markets, underwriting, and acquisition activities can be provided by NBFCs.

    • Investment and Credit Company
    • Mortgage Guarantee Companies
    • NBFC-Factors
    • NBFC-MFI
    • Infrastructure Finance Company
    • CIC-ND-SI
    • NBFC-Non-Operative Financial Holding Company

    The Central KYC registration is rapidly adopted by many NBFC s, it is one of the most significant NBFC enforcement. The aim of CKYC is to collect records for financial services clients. CERSAI, which stands for Central Securitization and Asset Reconstruction and Security Interest Registry, is the central KYC registry authority.


    LegalRaasta was founded on the principle that sophisticated legal and taxation services should be simple, modern, and inexpensive. We can serve our clients more efficiently thanks to cutting-edge practise technology.

    By continuing past this page, you agree to our Terms and Conditions Privacy Policy and Refund Policy | Copyright © 2015-2024 LegalRaasta.com| All Rights Reserved