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RBI simplifies process of registration of new NBFCs
Mumbai, Jun 18 (IBNS): To ease the process of registration of new Non Banking Financial Companies (NBFCs),the Reserve Bank of India (RBI) , on Friday, simplified the application form and revised the list of documents to be submitted.
The number of documents to be submitted by the NBFC applicants has been reduced from an existing set of 45 documents to 7-8 in the revised process.
From now onward, there would be two different types of applications for non-deposit taking NBFCs (NBFC-ND) based on sources of funds and customer Interface:
Type I - NBFC-ND not accepting public funds/ not intending to accept public funds in the future and not having customer interface/ not intending to have customer interface in the future
Type II - NBFC-ND accepting public funds/ intending to accept public funds in the future and/or having customer interface/intending to have customer interface in the future.
The processing of cases for Type I - NBFC-ND applicants would be on fast track mode. As these companies will not have access to public fund and will not have customer interface, they will be subjected to less intensive scrutiny / due diligence. However, CoR issued to Type I - NBFC-ND companies will be conditional. These companies will be prohibited from accessing public funds and having customer interface. In case these companies intend to avail public fund or intend to have customer interface in the future, they are required to take approval from Reserve Bank of India, Department of Non-Banking Regulation.
The RBI said in its announcement that the checklists mentioned are indicative and not exhaustive. The RBI, may, if necessary, call for any further documents to satisfy itself on the eligibility of the company seeking registration as NBFC.
In the event of the Reserve Bank calling for further documents in addition to those mentioned in the checklist, the applicant company must respond within a stipulated time of one month.
In the First Bi-monthly Monetary Policy Statement - 2016-17, it was stated that in order to make the process of registration of new NBFCs smoother and hassle free, it has been decided to simplify and rationalise the process of registering new NBFCs. The new application forms will be simpler and the number of documents required to be submitted will be reduced to a minimum.
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