FEMA & RBI Compliance

Non-Banking Financial Companies (NBFC) are establishments that provide financial services and banking facilities without meeting the legal definition of a Bank. They are covered under the Banking regulations laid down by the Reserve Bank of India and provide banking services like loans, credit facilities, TFCs, retirement planning, investing and stocking in the money market. However, they are restricted from taking any form of deposits from the general public. These organizations play a crucial role in the economy, offering their services in urban as well as rural areas, mostly granting loans allowing for the growth of new ventures.

NBFCs also provide a wide range of monetary advice like chit-reserves and advances. Hence it has become a very important part of our nation’s Gross Domestic Product and NBFCs alone count for a 12.5% rise in the Gross Domestic Product of our country. Most people prefer NBFCs over banks as they find them safe, efficient, and quick in assisting with financial requirements. Moreover, there are various loan products available and there is flexibility and transparency in their services.

The impact of Covid 19 on NBFCs
According to CRISIL, Fitch, SBI Research, India could dive into a full-blown recession with Arthur D Little saying it will push 120 million people back into poverty and destroy opportunities of up to 1 trillion dollars in GDP. The RBI states, banks have credit outstanding of roughly 1.92 trillion dollars and hold deposits worth about 1.69 trillion dollars.

  NBFCs, which are the key sources of funding for a lot of diverse segments not funded by banks, have been hit severely by COVID 19. They were immediately faced with a huge liquidity crisis and declining asset quality. Sectors critical to NBFCs, such as manufacturing, auto, real estate, and retail, are still operating at a subpar level. This has added to the pressure for NBFCs earlier affected by the IL&FS defaults.

• Incorporation of NBFC (Non-Banking Financial Corporation)/CIC (Core Investment Company) and Insurance Company.
• Registration of NBFC company into FIN-IND portal
• Appointment of Principal Officer/Nodal Officer/Compliance Officer.
• Preparation and filing of Fair Practice Code Policy
• Registration of NBFC Company into C-KYC Portal
• Preparation and Filing of SAC (Statutory Auditor Certificate).
• Quarterly / Half-yearly/ Annually filing of returns on RBI portal
• Preparation and filing of NBS-8 and NBS-9

Get in Touch