Non banking financial company are those companies which are registered under the companies act and is engaged in business of loans and advances acquisition of shares/bonds/debentures and which are issued by the government or any other local authority under the government. It also includes such kind of companies which are dealing in hire purchase, insurance business, chit business. The registration of NBFC is very important for the regulation of capital and money market and also to protect the interest of the depositors.
NBFC Registration Procedure
Any company want to get registered as non banking financial company then that company has to make an application to the Reserve Bank of India for the grant of NBFC certificate, along with the application there is needed to append the necessary documents. All the documents which are to be submitted beside with the application are to be filed in duplicate. After scrutinizing the application and all the necessary documents required for registration, if the Reserve Bank of India deems fit then NBFC certificate is to be granted.
NBFC Registration in India
The reserve bank of India regulates the working and operations of NBFC within the framework of the Reserve Bank of India Act, 1934 and the directions issued by it under the act. According to RBI act, NBFC is Non-banking financial company, which is registered under the Companies Act, 1956 of India and is engaged in the business of loans and advances, acquisition of shares/ debentures /stock/ bonds/ securities issued by government or local authority.