NBFC undertakes Financial activities as their principal business operation. This can be understood as, where the financial assets of the company constitute more than 50% of the total assets and the earnings from financial assets comprises more than 50% of gross income.
This article is designed to help gain information regarding mandatory compliances for obtaining CoR from RBI by the company desirous to step into the financial business.
There are certain entities, though being involved in financial activities does not require CoR from RBI as such entities are governed by other Acts. The exempted categories of NBFC are:
A company willing to work as an NBFC must fulfill the below-mentioned conditions:
Applications for obtaining registration with RBI shall be made through online mode, after which physical copies of all the mandatory documents must be submitted to the Regional Office of RBI.