NBFC Post Registration compliance

Overview For Post Certificate Of Registration Compliance By NBFC

An NBFC must meet certain registration standards in order to continue doing business once the RBI issues the certificate of registration to the NBFC. To lessen the likelihood of fraud and money laundering, the RBI has required to NBFC that in addition to acquiring COR from the R81, every NBFC must register with certain additional Authorities such as CERSAI, IU, FIU-IND, etc..

POST Certificate Of Registration NBFC Compliances

CERSAI Registration: Central Registry of Securitization Asset Reconstruction and the Security Interest of India is known as CERSAI. The NBFC must register with CERSAI after receiving the certificate of registration from RBI. The reason why NBFCs must register with CERSAI after receiving a COR is only so they may submit security interests they have generated about any equitable mortgages, moveable property, hypothecations, or other properties the RBI may deem appropriate for NBFCs. The goal of CERSAI is to identify fraud or any other fraudulent conduct, report it, and take appropriate action.

Registration with CIC: "Credit information Company" is referred to as CIC. Every NBFC must register their business with all CICs after receiving a COR in order to give their clients' credit information in a consistent fashion. Credit Information Bureau (India) Limited (CIBIL), Equifax Credit Information Services Private Limited (Equifax), Experian Credit Information Company of India Private Limited (Experian), and CRIF High Mark Credit Information Services Private Limited (CRIF) are the four CICs that are currently registered in India. Therefore, upon the issuing of the COR, every NBFC is required to register with each of these credit information businesses and provide the credit information for each of its clients.

FIU - IND Registration: Financial intelligence unit is referred to as FIU-IND. Following the issuing of the NBFC's Certificate of Registration, the NBFC is required to nominate a Principal Officer (P0) and register as a reporting entity (RE) with FIU-IND. All NBFCs are required to register with FIU-IND in order to submit the Cash Transaction Report and Suspicious Transaction Reports as may be required.

Information Utility registration: After receiving a COR, each NBFC is needed to register with information utility and provide any necessary information.

CKYC Registration: Following the issuing of the COR, each NBFC is required to register with the central KYC to compile records of the clients' KYC. A register called CKYC houses all the data pertaining to NBFC and other financial institution clients.

Policies Required To Be Made By NBFC

Information Technology (IT) Policy :

As the scope of the IT framework in the NBFC sector has been expanding daily, the RBI has required that each NBFC develop an IT Policy, which must be approved by the NBFC Board. The Reserve Bank of India has divided the instructions for creating an IT policy into two sections for NBFCs that are systematically significant and those that are not. The relevant NBFC must keep this structure in mind when it develops its IT Policy.

Know Your Customer (KYC) Policies and Anti Money Laundering (AML) :

Measures Every NBFC must develop a framework for their KYC policy and anti-money laundering measures and have it approved by their board of directors, according to a directive from the RBI. Customer acceptance policy, customer identification processes, and other components are included in KYC policy. The NBFC is required to adhere to the KYC Policy and AML Measures, guarantee that the KYC information collected from the client is kept secret, and ensure that no transaction will result in any kind of money laundering.

Fair Practice Code (FPC) : of NBFC Every NBFC is required to create a fair practises code, which must then be approved by the board of the organisation. The fair practise code contains broad guidelines on making proper disclosures about a loan's terms and circumstances and using a non-coercive recovery strategy. The board of the business must evaluate its fair practises code annually, and the firm must make sure that its operations are carried out in accordance with the NBFC's fair practises code.

NBFC Compliances - Overview

These days, Non Banking Financial Companies (NBFCs) are essential to our economy. Businesses may get loans, advances, leasing, and hire purchases from nonbank financial institutions.

For the purpose of regulating NBFCs, the Reserve Bank of India has issued several notifications, circulars, and master directives.

All businesses holding a Certificate of Registration for Non Banking Financial Companies (NBFC) are required to abide by any restrictions set by the Reserve Bank of India; failure to do so may result in sanctions from the RBI and/or the cancellation of the NBFC's licence.

Mandatory Returns To Be Filed By NBFC

The following are the Mandatory return which are required to be filed by the different kinds of NBFC

Return Time limit New Return Introduced Explanation

NBS -1 / DNBS - 01 Upto 15 April /15 July! 15 Oct. /15 Jan DNBS - 01 - RBI has introduced the new XBRL return to be filed in place of form NBS 1.
For FY 2019-20 both NBS 1 and DNBS -01 XBRL needs to be filed. For FY 202021 and onwards only DNBS - 01 XBRL return is required to be filed. Return on Financial indicators by NBFC accepting Of holding deposit to be filed within 15 days of closure of the quarter

NBS -2 / DNBS - 02 Upto 15 April /15 July! 15 Oct. /15 Jan DNBS - 03 - RBl has introduced the new XBRL return to be filed in place of form NBS 2 NBS Sand NBS 7.

For FY 2019-20 both NBS 2 / 3/7 DNBS - 03 XBRL needs to be filed.For FY 2020-21 and onwards only DNBS - 03 XBRL return is required to be filed. Return on Prudential norms to be filed by deposit taking NBFC within 15 days of closure of the quarter

Return on liquid assets to be filed by deposit taking NBFC within 15 days of closure of the quarter

Return on Prudential norms to be filed by Non deposit taking systematically important NBFC to be filed within 15 days of closure of the quarter

NBS 2 / DNBS - 03 Upto 15 April/ 15 July! 15 Oct. /15 Jan
NBS 7 / DNBS - 03 Upto 15 April/ 15 July! 15 Oct. /15 Jan

ALM Return Upto 30th April / 30th oct Every Deposit taking NBFC holding public deposit of more than Rs 20 Cr. Or Asset size of more than 100 Cr. Needs to flute the ALM Return within one month of each half of financial year

NBS 8 / DNBS - 02 Up to 30 May every year DNBS - 02 -RBI has introduced the new XBRL return to be filed in place of form NBS 8 and NBS 9.

DNBS -02 XBRL return is required to be filed. Every Non-Deposit taking NBFC having asset size of INR 100 Cr. - 500 Cr. Is required to file this return every year within 60 days of closure of financial Year
NBS 9 / DNBS -02 Up to 30 May every year
Every Non-Deposit taking NBFC having asset size upto INR 100 Cr. Is required to file this return every year within 60 days of closure of financial year

Return	Time limit	New Return Introduced	Explanation
NBS -1 / DNBS - 01	Upto 15 April /15 July! 15 Oct. /15 Jan	DNBS - 01 - RBI has introduced the new XBRL return to be filed in place of form NBS 1. For FY 2019-20 both NBS 1 and DNBS -01 XBRL needs to be filed. For FY 202021 and onwards only DNBS - 01 XBRL return is required to be filed.	Return on Financial indicators by NBFC accepting Of holding deposit to be filed within 15 days of closure of the quarter
NBS -2 / DNBS - 02	Upto 15 April /15 July! 15 Oct. /15 Jan	DNBS - 03 - RBl has introduced the new XBRL return to be filed in place of form NBS 2 NBS Sand NBS 7. For FY 2019-20 both NBS 2 / 3/7 DNBS - 03 XBRL needs to be filed.For FY 2020-21 and onwards only DNBS - 03 XBRL return is required to be filed.	Return on Prudential norms to be filed by deposit taking NBFC within 15 days of closure of the quarter Return on liquid assets to be filed by deposit taking NBFC within 15 days of closure of the quarter Return on Prudential norms to be filed by Non deposit taking systematically important NBFC to be filed within 15 days of closure of the quarter
NBS 2 / DNBS - 03	Upto 15 April/ 15 July! 15 Oct. /15 Jan
NBS 7 / DNBS - 03	Upto 15 April/ 15 July! 15 Oct. /15 Jan
ALM Return	Upto 30th April / 30th oct		Every Deposit taking NBFC holding public deposit of more than Rs 20 Cr. Or Asset size of more than 100 Cr. Needs to flute the ALM Return within one month of each half of financial year
NBS 8 / DNBS - 02	Up to 30 May every year	DNBS - 02 -RBI has introduced the new XBRL return to be filed in place of form NBS 8 and NBS 9. DNBS -02 XBRL return is required to be filed.	Every Non-Deposit taking NBFC having asset size of INR 100 Cr. - 500 Cr. Is required to file this return every year within 60 days of closure of financial Year
NBS 9 / DNBS -02	Up to 30 May every year	Every Non-Deposit taking NBFC having asset size upto INR 100 Cr. Is required to file this return every year within 60 days of closure of financial year

Other Compliances To Be Made By NBFC

The following are the other compliances that needs to be fulfilled by NBFC:

Board resolution regarding Non acceptance of deposit: Within 30 days of the start of the fiscal year, any NBFC that does not accept public deposits must present a board resolution regarding the refusal to accept or keep any such deposits.

Statutory Auditor Certificate on Prudential Norms: Within 30 days of the board of directors' approval of the company's balance sheet, each NBFC is obliged to submit a Statutory Auditor Certificate about compliance with Prudential Norms to the relevant regional office of the RBI.

Statutory Auditor Certificate on Compliances of FDI Norms: Every NBFC with FDI is expected to provide a Statutory Auditor Certificate in connection to the compliance of FDI Norms to the relevant regional office of the RBI within 30 days of each half of the financial year.

Adoption or review to Fair practice code : Every NBFC is required to evaluate and adopt the NBFC fair practise code at its first board meeting of the fiscal year.

Compliance with the KYC Guidelines : Every NBFC must always adhere to the KYC requirements set out in this respect by the Reserve Bank of India while doing NBFC operations.

Statutory Auditor Certificate on NBFI Activities : Within three days of the board of directors approving the company's balance sheet, each NBFC is obliged to submit a Statutory Auditor Certificate in respect to the NBFI operations to the relevant regional office of the RBI.

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