Before learning about the process of getting an NBFC license, let us understand its need and eligibility requirements.
There are eight types of NBFC licenses in India:
RBI regulates and supervises NBFCs involved with the primary business of lending and acquiring shares, stocks, and bonds. NBFCs are also engaged in financial leasing and accepting deposits. The 50-50 test is required to determine a company’s eligibility for an NBFC license. NBFC is said to be involved in the principal business of financial activity if
Any company that is fulfilling these criteria should obtain an NBFC license.
RBI stipulates specific requirements to get registered as a Non-Banking Financial Company. The eligibility conditions are as follows:
Step 1: If your company is not already registered, register the company under the Companies Act.
Step 2: Make sure that your company meets the basic eligibility requirements listed above.
Step 3: Now, you can find the application form on the official website of RBI.
Step 4: Fill in the correct details in the application form and submit the required documents along with the application form. The essential documents discussed above need to be submitted along with the application form.
Step 5: After the submission of the application form, the authority shall give a CARN number.
Step 6: Now, send the application’s hard copy to the RBI regional branch.
Step 7: Now, RBI will provide the NBFC license after the verification.