NBFC Registration with RBI in India
Get your Non-Banking Financial Company licence, the Certificate of Registration from the Reserve Bank of India, with a team that plans it end to end. We set up the company, structure your Net Owned Fund, write the business plan and policies RBI expects, file on RBI's PRAVAAH portal and handle every query until the licence is issued.
- Right NBFC type and structure
- 5-year business plan & projections
- Board policies RBI expects
- PRAVAAH filing & RBI follow-up
What is an NBFC?
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act whose principal business is lending, investing or other financial activities. Under Section 45-IA of the RBI Act, 1934, it must hold a Certificate of Registration (CoR) from the Reserve Bank of India and a minimum Net Owned Fund (NOF) before it starts business.
NBFCs give loans to individuals and businesses, finance vehicles and gold, fund microfinance, factor receivables, run peer-to-peer lending platforms and more. Unlike a bank, an NBFC can't accept demand deposits, can't issue cheques drawn on itself, and its customers' deposits aren't covered by deposit insurance. New NBFCs are registered as non-deposit-taking companies.
RBI treats a company as an NBFC when its financial activity is its principal business: financial assets are more than 50% of total assets, and income from financial assets is more than 50% of gross income (the "50-50 test"). A company that meets this test must register, even if it calls itself something else.
NBFCs are regulated under RBI's Scale Based Regulation. Most new NBFCs start in the Base Layer (non-deposit-taking NBFCs with assets below ₹1,000 crore) and face lighter rules than larger NBFCs in the Middle and Upper Layers. RBI consolidated these rules in its registration and scale-based regulation directions of November 2025.
Types of NBFC and minimum Net Owned Fund
The NBFC type depends on your business model, and it decides the minimum NOF you need before applying.
| NBFC type | What it does | Minimum NOF |
|---|---|---|
| NBFC-ICC (Investment and Credit Company) | Loans and investments: personal, business, gold, vehicle, education and other loans | ₹10 crore |
| NBFC-MFI (Microfinance) | Collateral-free loans to low-income households; at least 60% of assets in microfinance loans | ₹10 crore |
| NBFC-Factor | Factoring, buying or financing trade receivables, as its main business | ₹10 crore |
| NBFC-P2P | Online peer-to-peer lending platform connecting lenders and borrowers | ₹2 crore |
| NBFC-AA (Account Aggregator) | Consent-based sharing of customers' financial data between institutions | ₹2 crore |
| NBFC without public funds or customer interface | Lends or invests only its own or group funds, without dealing with outside customers | ₹2 crore |
| HFC (Housing Finance Company) | Home loans; registered with RBI and supervised by the National Housing Bank | ₹20 crore |
| NBFC-IFC / IDF-NBFC | Infrastructure financing and infrastructure debt funds | ₹300 crore |
NOF is paid-up equity capital plus free reserves, less accumulated losses, deferred revenue expenditure and other intangible assets, and less certain investments in and loans to group companies. Existing NBFC-ICCs must reach ₹10 crore by 31 March 2027. In February 2026, RBI proposed exempting NBFCs with no public funds and no customer interface (assets up to ₹1,000 crore) from registration; that change was a draft at the time of writing.
Eligibility for NBFC registration
RBI looks closely at the people, the money and the plan. These are the essentials.
- 1A company under the Companies ActA private or public limited company, with financial activities as its main object in the MOA. You can form a new company or use an existing one.
- 2Minimum Net Owned Fund₹10 crore for most lending NBFCs (₹2 crore for P2P, Account Aggregators and NBFCs without public funds or customer interface), paid in as equity and kept in the bank when you apply.
- 3Experienced, fit and proper directorsAt least one director should have relevant experience of working in a bank or NBFC. Directors and promoters must have clean credit and legal records.
- 4Clear source of fundsRBI checks where the capital came from. Promoters' income tax returns, net worth and bank records must support the money brought in.
- 5A credible business planA 5-year plan with products, target customers, funding, risk management, technology and realistic projections.
- 6Policies and systemsBoard-approved policies such as Fair Practices Code, KYC/AML, credit and grievance redressal, and IT systems to match the business.
Foreign investment: 100% FDI is allowed in RBI-regulated NBFCs under the automatic route. Investors from countries sharing a land border with India need government approval, and fresh investors from FATF non-compliant jurisdictions must together hold less than 20% of voting power.
Which NBFC licence do you need?
Pick your business model and starting point to see the NBFC type, the minimum NOF and the plan that fits.
Your result
An indicative guide based on RBI's directions as of 2026. RBI decides the classification and registration of every applicant.
NBFC registration plans
Fixed professional fees for the full licence process. Capital (NOF), government fees and stamp duty are separate and paid at actuals.
CoR Application
For an existing company with the NOF in place.
₹1,49,999₹1,99,999+ GST · NOF & govt. fees extra
- Eligibility, NBFC type and structure review
- Alteration of MOA objects to financial activities
- 5-year business plan with projections
- Board policies: Fair Practices Code, KYC/AML, credit, grievance, IT
- Director and promoter fit and proper documentation
- Application on RBI's PRAVAAH portal
- Replies to RBI queries until decision
- New company incorporation
- Post-licence setup
Company + CoR
New company set up for NBFC, then the full RBI licence.
₹1,79,999₹2,39,999+ GST · NOF & govt. fees extra
- Everything in CoR Application, plus:
- Company incorporation with NBFC objects (DSC, DIN, SPICe+)
- PAN, TAN and bank account support
- Capital and NOF planning, share allotment filings
- NOF certificate coordination with the auditor
- Meeting preparation for RBI interactions
- Dedicated NBFC expert on WhatsApp
Turnkey NBFC
Licence plus everything to start lending compliantly.
₹2,99,999₹3,89,999+ GST · NOF & govt. fees extra
- Everything in Company + CoR, plus:
- Credit bureau memberships and CKYC registration
- Loan application, sanction letter and agreement templates
- RBI returns calendar and first-year return filing support
- Statutory Auditor Certificate coordination (year 1)
- Website with required disclosures
- Priority handling on every step
GST at 18% applies to the professional fee. Incorporation fees and stamp duty depend on your state and authorised capital (₹10 crore or more for most NBFCs), and we quote them before filing. Buying an existing NBFC is quoted separately after due diligence. RBI's decision is independent; our fee covers the work, not the outcome.
Documents required for NBFC registration
We prepare most of this pack for you. Here's what goes into a typical application.
Company
- Certificate of Incorporation, MOA (with financial objects) and AOA
- Board resolution approving the application
- Audited financial statements (for existing companies)
- Bank certificate and statement showing the NOF, and an auditor's certificate of NOF
- Shareholding pattern and group structure chart
- Statutory auditor's certificate that the company doesn't hold public deposits
Directors & promoters
- PAN, Aadhaar or passport, address proof and photographs
- Profiles with education and work experience, especially in finance
- Credit reports (such as CIBIL) and bankers' reports
- Income tax returns and net worth certificates of promoters
- Fit and proper declarations and details of other directorships
- Source of funds for the capital brought in
Business plan & policies
- 5-year business plan with projected balance sheets and profit and loss
- Products, target customers, funding sources and branch plan
- Fair Practices Code, KYC/AML and grievance redressal policies
- Credit, investment and risk management policies
- IT and information security plan
- Organisation chart and key staff
Tip: most rejections come from an unclear source of capital, weak director experience or a generic business plan. We review these three before you put money into the company.
How to get an NBFC licence: step by step
Applications are filed online on RBI's PRAVAAH portal. The timeline depends mostly on how complete the application is and how quickly queries are answered.
Feasibility & structureWeek 1–2
We confirm the right NBFC type, shareholding, board and capital plan, and check promoters' and directors' eligibility before any money moves.
Company setupWeek 2–5
We incorporate a new company with financial objects in its MOA, or alter the objects of your existing company, and open its bank account.
Net Owned FundWeek 4–6
Promoters bring in equity capital equal to at least the minimum NOF, usually kept as a bank deposit. The auditor certifies the NOF.
Business plan & policiesWeek 4–8
We write the 5-year business plan and projections, and draft board policies and the organisation structure to fit your products.
Application on PRAVAAHWeek 8–10
We file the application with all documents and declarations on RBI's PRAVAAH portal, and track it at each stage.
RBI review & licenceMonth 3–12
RBI reviews the application, may raise queries or meet the promoters, and then grants the Certificate of Registration. We reply to every query and prepare you for meetings.
Timelines are typical, not guaranteed; RBI decides at its own pace. An alternative is to buy an existing NBFC. That needs RBI's prior approval for acquiring 26% or more of the shares or changing more than 30% of the directors (other than independent directors), followed by a 30-day public notice.
NBFC vs Bank vs Nidhi Company
All three lend money, but their licences, capital and freedoms are very different.
| Feature | NBFC | Bank | Nidhi Company |
|---|---|---|---|
| Licence | RBI Certificate of Registration | RBI banking licence | Central Government declaration (MCA) |
| Minimum capital | ₹2 crore to ₹300 crore NOF by type; ₹10 crore for most lenders | Hundreds of crores | ₹10 lakh paid-up, ₹20 lakh NOF |
| Who it can lend to | Anyone, as per its model | Anyone | Members only |
| Deposits | New NBFCs can't accept public deposits | Savings, current and term deposits | From members only |
| Cheques & current accounts | No | Yes | No |
| Deposit insurance | No | Yes (DICGC) | No |
| Area | All India | As licensed | Branches restricted |
| Foreign investment | 100% under automatic route | Limited, with approvals | Not typical |
| Best for | Lending and fintech businesses | Full banking | Community savings and secured loans |
Smaller budget? If ₹10 crore isn't realistic yet, a Nidhi Company lets members save and borrow among themselves, or you can partner with an existing NBFC as a lending service provider.
NBFC compliance after registration
An NBFC follows both company law and RBI's directions. These are the main ongoing requirements for a Base Layer NBFC.
- Before lendingPolicies and disclosuresBoard-approved Fair Practices Code, KYC/AML and grievance redressal policies, a grievance officer, and interest rate and charges disclosed to customers.
- Before lendingCredit bureaus and CKYCMembership of all credit information companies, regular reporting of loan data, and uploading customer KYC to the CKYC registry.
- PeriodicallyRBI returnsReturns filed online with RBI as per its reporting calendar, based on your NBFC type and size.
- YearlyStatutory Auditor CertificateAuditor's certificate to RBI confirming the company still meets the NBFC criteria and NOF requirement.
- OngoingPrudential normsAsset classification and provisioning (NPA at 90 days overdue), capital adequacy where applicable, and concentration limits.
- Before changesRBI prior approvalNeeded before acquiring 26% or more of shares or changing more than 30% of directors, and for mergers or changes in control.
- If lending onlineDigital lending rulesRBI's digital lending directions on apps, lending service providers, disclosures and data.
- YearlyCompany law filingsBoard meetings, AGM, audit, AOC-4, MGT-7, ITR-6 and DIR-3 KYC, like any company.
More than a licence: Start, Build and Grow with one team
Getting the CoR is the start. We also help you set up compliance, go digital and reach borrowers.
Licence & compliance
CA/CS experts for the RBI licence, company law and yearly RBI and ROC compliance.
ROC annual filingWebsite & disclosures
A professional website with the disclosures RBI expects, plus domain, business email and Google Business Profile.
Website plansReach borrowers
WhatsApp Business API, bulk SMS and cloud telephony for EMI reminders, collections and customer service.
WhatsApp APINBFC registration: frequently asked questions
What is NBFC registration?+
It is getting a Certificate of Registration (CoR) from the Reserve Bank of India under Section 45-IA of the RBI Act, 1934. A company can't carry on the business of a non-banking financial institution without this certificate and the minimum Net Owned Fund.
What is the minimum capital to start an NBFC?+
It depends on the type. NBFC-ICC, NBFC-MFI and NBFC-Factor need a Net Owned Fund of ₹10 crore. NBFC-P2P, Account Aggregators and NBFCs without public funds or customer interface need ₹2 crore. Housing Finance Companies need ₹20 crore, and infrastructure NBFCs ₹300 crore.
What is Net Owned Fund (NOF)?+
NOF is the company's paid-up equity capital and free reserves, minus accumulated losses, deferred revenue expenditure and other intangible assets, and minus certain investments in and loans to group companies beyond a limit. It must be in place before you apply and maintained afterwards.
How long does NBFC registration take?+
Typically 6 to 12 months from planning to licence. Company setup, capital and the application pack take about 2 to 3 months; RBI's review and queries take the rest. Complete, well-supported applications move fastest.
How much does NBFC registration cost?+
Our professional fee starts at ₹1,49,999 + GST for an existing company, and ₹1,79,999 + GST including a new company. On top of that are the Net Owned Fund itself (which stays in the company), incorporation fees and stamp duty based on your authorised capital and state, and auditor and other certificates.
Where is the NBFC application filed?+
Online on RBI's PRAVAAH portal, which RBI launched in May 2024 for regulatory applications. The application, documents and RBI's queries are all handled through the portal.
Can a private limited company become an NBFC?+
Yes. Both private and public limited companies can apply. Most new NBFCs are private limited companies. The MOA must include financial activities as its objects.
What is the 50-50 principal business test?+
A company is treated as an NBFC when financial assets are more than 50% of its total assets and income from financial assets is more than 50% of its gross income, based on its last audited balance sheet. A company meeting both tests must register with RBI.
What experience do directors need?+
RBI expects at least one director to have relevant experience of working in a bank or NBFC. All directors and promoters must be fit and proper, with clean credit histories and no adverse legal or regulatory record.
Can a new NBFC accept public deposits?+
No. New NBFCs are registered as non-deposit-taking companies. Accepting public deposits needs specific RBI permission and much stricter rules. NBFCs can raise money through equity, bank loans and debentures.
What is Scale Based Regulation?+
RBI's framework that places NBFCs in Base, Middle, Upper and Top layers based on size and risk. A new non-deposit-taking NBFC with assets below ₹1,000 crore sits in the Base Layer and has the lightest rules.
Is foreign investment allowed in an NBFC?+
Yes. 100% FDI is allowed under the automatic route in RBI-regulated NBFCs. Investors from countries sharing a land border with India need government approval, and fresh investors from FATF non-compliant jurisdictions must together hold less than 20% of voting power.
Can I buy an existing NBFC instead of applying for a new licence?+
Yes, but it needs RBI's prior approval when 26% or more of the shares change hands or more than 30% of the directors (other than independent directors) change. A 30-day public notice follows approval. Careful due diligence of the target's books and RBI compliance is essential.
Why are NBFC applications rejected?+
Common reasons are an unclear source of capital, NOF falling short, directors without relevant experience or with poor credit history, a generic or unrealistic business plan, missing documents and slow answers to RBI's queries.
Is there a cheaper alternative to an NBFC licence?+
Depending on your model, yes. A Nidhi company lets members save and borrow among themselves with much lower capital, and a fintech can partner with an existing NBFC or bank as a lending service provider under RBI's digital lending rules.
Do NBFCs that only invest group funds need registration?+
Currently they register as NBFCs without public funds or customer interface, with ₹2 crore NOF and lighter rules. In February 2026 RBI proposed exempting such NBFCs with assets up to ₹1,000 crore from registration; check the final position before applying.
What compliance does an NBFC have after registration?+
Board-approved Fair Practices Code, KYC/AML and grievance redressal policies, credit bureau membership and reporting, CKYC uploads, periodic RBI returns, a yearly Statutory Auditor Certificate, NPA recognition at 90 days overdue, RBI prior approval for changes in control, plus normal company law filings.
What happens if a company does NBFC business without registration?+
It's an offence under the RBI Act and can lead to penalties and prosecution. RBI also issues public cautions against unregistered lenders. That's why the 50-50 test should be checked before a company starts lending or investing as a business.
Planning an NBFC?
Talk to our team before you put in capital. We'll tell you the right licence, the real cost and a realistic timeline.
Disclaimer: IBACT Digital (IBACT Innovations Pvt Ltd) is a private consultancy, not a government body, and is not affiliated with the Reserve Bank of India. The Certificate of Registration is granted solely at RBI's discretion. Information on this page is for general guidance and is based on the RBI Act, 1934 and RBI's directions as of October 2026.