Quick answer
What is required for NBFC registration with RBI?
NBFC registration needs a company incorporated under the Companies Act with net owned funds of at least ₹10 crore (higher or lower for some categories), an application with documents on RBI's PRAVAAH portal, and a business that meets the principal business test. Small Type I NBFCs without public funds or customer interface may be exempt.
- ₹10 crore NOF for new applicants since 1 October 2022
- Apply on RBI's PRAVAAH portal
- Financial assets and income must each exceed 50%
- Type I exemption under April 2026 directions
What is NBFC registration and who needs it?
NBFC registration is RBI's permission for a company to carry on non-banking financial business, such as lending, investing in securities, leasing or hire purchase. Without a Certificate of Registration, section 45-IA of the RBI Act bars a company from that business, unless an RBI exemption applies.
RBI's FAQ defines an NBFC as a company registered under the Companies Act, so a partnership, proprietorship or LLP cannot hold this registration. If you are still choosing a structure, start with private limited company registration and build the NBFC on top of it. Companies whose main business is agriculture, industrial activity, trading in goods, services or real estate are not NBFCs even if they lend some surplus money.
Some financial entities answer to other regulators and are kept out of RBI registration to avoid dual regulation: SEBI-registered intermediaries, IRDAI-registered insurers, and Nidhi and chit fund companies. A community lender that only serves its own members may fit Nidhi company registration better.
How do you know if your company is an NBFC: the 50-50 test
RBI treats a company as an NBFC when financial activity is its principal business: financial assets are more than 50% of total assets (net of intangibles) and income from financial assets is more than 50% of gross income. Both conditions must be met.
| Company | Financial assets share | Financial income share | Result |
|---|---|---|---|
| Trading company in Chandni Chowk lending surplus cash to dealers | 30% of total assets | 15% of gross income | Not an NBFC; main business is trade |
| Investment company holding shares and giving loans | 80% of total assets | 70% of gross income | Meets the test; needs registration unless exempt |
| Company with large loan book but mostly rental income | 60% of total assets | 35% of gross income | Fails the income limb; not an NBFC on these figures |
Illustrative figures only. Test as described in RBI's FAQ on NBFCs (updated 15 September 2026), checked 10 November 2026.
Need help with NBFC registration? Talk to a chartered accountant in Delhi today. First call is free.
Who is exempt from NBFC registration after April 2026?
Under RBI's Amendment Directions of 29 April 2026, an NBFC that has no public funds, no customer interface and assets below ₹1,000 crore (a Type I NBFC) is exempt from registration under section 45-IA. It must apply for a Type I certificate if assets reach ₹1,000 crore or if it wants to invest overseas in financial services.
Public funds include public deposits, inter-corporate deposits and bank finance; for Type I companies RBI treats any outside money that creates an outside liability as public funds. Customer interface means dealing with customers while carrying on the business. A Type I company that wants to take outside money or deal with customers needs RBI's prior approval and a Type II certificate.
| Situation | Registration needed? |
|---|---|
| Lends to customers or borrows from banks, any size | Yes, Type II CoR |
| Own funds only, no customers, assets below ₹1,000 crore | No, exempt as Type I |
| Own funds only, assets of ₹1,000 crore or more | Yes, Type I CoR |
| Type I planning overseas investment in financial services | Yes, Type I CoR |
| Nidhi, chit fund, SEBI or IRDAI regulated entity | No RBI NBFC registration |
Source: RBI FAQ on NBFCs, citing the NBFC (Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 dated 29 April 2026. Checked 10 November 2026.
How much net owned fund is needed for NBFC registration?
A new applicant needs net owned funds of ₹10 crore from the outset, a rule in force since 1 October 2022. Some categories have their own figure, and existing NBFCs that were registered at lower levels must reach ₹10 crore by 31 March 2027.
| Category | Minimum NOF |
|---|---|
| New NBFC (general rule) | ₹10 crore |
| Housing Finance Company (HFC) | ₹20 crore |
| Infrastructure Debt Fund NBFC | ₹300 crore |
| Account Aggregator (NBFC-AA) | ₹2 crore |
| Peer to peer lending platform (NBFC-P2P) | ₹2 crore |
| Existing NBFCs below ₹10 crore | Reach ₹10 crore by 31 March 2027 |
Source: RBI FAQ on NBFCs, checked 10 November 2026. For other categories check the RBI master directions before you plan capital.
What documents are needed for NBFC registration?
RBI publishes the document list for the application (its press release of 17 June 2016 is referenced in the current FAQ). In practice the pack covers the company, its directors and shareholders, the source and proof of the ₹10 crore, and a business plan that shows how the money will be deployed.
| Area | Typical documents |
|---|---|
| Company | Certificate of incorporation, MoA with financial business objects, AoA, PAN |
| Board | Board resolution approving the application; profiles, KYC and credit reports of directors |
| Shareholders | Shareholding pattern and details of promoters and their group entities |
| Capital | Statutory auditor's certificate of net owned funds; bank proof that the funds are held |
| Business plan | Plan for the next few years with sources of funds and lending policy |
| Compliance | Declarations on group companies, any past defaults and other regulatory dealings |
Compiled from practitioner guides such as this NBFC registration guide (secondary). RBI's checklist on PRAVAAH is the final word.
How does the NBFC registration process work: step by step
The route is: incorporate the company, bring in the capital, prepare the business plan, file on PRAVAAH, answer RBI's queries and receive the certificate. Expect RBI to come back with questions on promoters, source of funds and the plan.
- 1
Decide the category
Confirm whether you will be a Type II lender, an investment company, or a specialised category, and whether the Type I exemption fits.
- 2
Incorporate the company
Form a private or public limited company with financial business objects in the MoA.
- 3
Bring in net owned funds
Infuse equity so that NOF reaches ₹10 crore or the category figure, and keep it in a bank.
- 4
Prepare the plan and papers
Draft the business plan, director profiles and auditor's NOF certificate.
- 5
Apply on PRAVAAH
Submit the application with documents on pravaah.rbi.org.in.
- 6
Answer queries and receive the CoR
Reply to RBI's queries on time. Start the financial business only after the certificate is issued.
What are the fees and timeline for NBFC registration?
RBI's FAQ does not set a fixed processing period, so plan for several rounds of queries rather than a fixed date. The biggest cost is the capital itself: ₹10 crore of net owned funds that must be in place before you apply. Company incorporation fees follow MCA rules.
| Item | What to expect |
|---|---|
| Net owned funds | ₹10 crore for most new NBFCs, brought in as equity |
| Company incorporation | MCA fees and Delhi stamp duty by authorised capital |
| RBI processing | No fixed period on RBI's FAQ; depends on queries |
| Professional work | Fixed quote from us before work starts |
Fees: MCA fee calculator. We have not found an official RBI application fee notice, so we do not quote one.
Can a new NBFC accept public deposits?
Practically no. RBI's FAQ says it has not issued new certificates for accepting public deposits since 1997. A new NBFC will be a non-deposit-taking company that funds itself through equity and, if it is Type II, borrowings.
Only existing NBFCs holding a deposit-taking certificate and an investment-grade rating may accept public deposits, within limits RBI sets. If your plan depends on retail deposits, revisit it before you spend on incorporation.
What compliance applies after the certificate, and why do applications fail?
After registration, an NBFC follows RBI's Scale Based Regulation for its layer, files the returns RBI prescribes, keeps NOF at the required level and continues normal company filings. Applications usually fail on short NOF, weak source-of-funds evidence, unclear business plans or a principal business that does not pass the 50-50 test.
The company side includes a statutory audit, AOC-4, MGT-7 and director KYC, covered on our ROC compliance page. Many promoter groups also want monthly MIS and board reporting from day one; our virtual CFO services page explains that work. If foreign investors are on the cap table, inward investment must also be reported under FEMA, as described on FEMA compliance.
How does CA in Delhi handle NBFC registration?
Send us the promoter details, the planned activity, the source of the capital and any existing company. We check whether you need registration or fall under the Type I exemption, then give you a fixed quote before work starts. You get back an incorporated company (if needed), the application pack and a post-registration compliance calendar.
Greenwolf Advisors lists entity setup, regulatory filings, governance and financial controls among its services. The RBI application itself is passed to the listed firm or partner professional that handles NBFC work, and you confirm scope before anything is filed. The NOF certificate comes from the company's statutory auditor; if you need one, our auditor near me page explains how to choose.
Our office is at Netaji Subhash Place, and promoters based around Connaught Place can meet us there or work with us online. To start, call or WhatsApp +91 99114 92897, or use the enquiry form.
Frequently asked questions
What is the minimum capital for NBFC registration in 2026?
A new NBFC needs net owned funds of ₹10 crore, in force since 1 October 2022. Housing finance companies need ₹20 crore, infrastructure debt fund NBFCs ₹300 crore, and account aggregators and P2P platforms ₹2 crore, per RBI's FAQ updated September 2026.
Can an LLP or partnership firm get NBFC registration?
No. RBI's FAQ defines an NBFC as a company registered under the Companies Act, so you need a private or public limited company. RBI also says individuals, firms and unincorporated bodies cannot accept deposits if their business includes lending or investment, except loans from relatives.
Where do you apply for NBFC registration?
On RBI's PRAVAAH portal at pravaah.rbi.org.in, with the documents RBI prescribes. Older guides mention the COSMOS portal; the current RBI FAQ refers to PRAVAAH for new applications.
What is a Type I NBFC?
A Type I NBFC has no public funds and no customer interface. Under RBI's Amendment Directions of 29 April 2026, Type I NBFCs with assets below ₹1,000 crore are exempt from registration. They need a Type I certificate at ₹1,000 crore of assets or for overseas investment in financial services.
Can a new NBFC take public deposits?
No new deposit-taking certificates have been issued since 1997, according to RBI. A new NBFC is non-deposit taking and funds itself through equity and permitted borrowings.
Do I need NBFC registration to lend to group companies?
It depends on the 50-50 test and the Type I conditions. A company whose financial assets and financial income each exceed half its totals is an NBFC. If it uses only its own funds and has no customers outside, it may be exempt as Type I below ₹1,000 crore of assets. Get the figures checked before you lend.
Who certifies net owned funds for the RBI application?
The company's statutory auditor usually certifies net owned funds from the books. Our statutory audit page explains how the auditor is appointed and what the audit covers.
How long does RBI take to issue an NBFC certificate?
RBI's FAQ does not give a fixed processing time. The time taken depends on how complete the application is and how quickly you answer queries. We will not promise a date, but we prepare the pack so that common queries are answered up front.
What happens to existing NBFCs below ₹10 crore NOF?
RBI's FAQ gives existing NBFCs until 31 March 2027 to reach ₹10 crore of net owned funds. Plan the capital infusion and the board approvals now so the deadline does not catch you.