Non-Banking Financial Companies (NBFCs) are financial institutions that do not have a full banking license from the Reserve Bank of India (RBI). However, they can still offer a variety of financial services, such as loans, investments, and insurance.
Registration of NBFCs in India
To register as an NBFC in India, the company must meet the following requirements:
- It must be incorporated as a company under the Companies Act, 2013.
- It must have a minimum net owned funds (NOF) of ₹2 crores.
- It must have a board of directors with at least three members.
- It must have a chief executive officer (CEO) and a chief financial officer (CFO).
- It must have a risk management framework in place.
- It must comply with all applicable laws and regulations.
The application for registration as an NBFC can be submitted online or offline to the RBI. The RBI will review the application and may ask for additional information or clarifications. If the application is approved, the RBI will issue a certificate of registration.
MCQs on the registration of NBFCs in India
- Which of the following is not a requirement for registering as an NBFC in India?
- Being incorporated as a company under the Companies Act, 2013
- Having a minimum NOF of ₹2 crores
- Having a board of directors with at least five members
- Having a risk management framework in place
- Which of the following is the authority that regulates NBFCs in India?
- Reserve Bank of India
- Securities and Exchange Board of India
- Insurance Regulatory and Development Authority
- National Housing Bank
- What is the minimum NOF required for registering as an NBFC in India?
- ₹2 crores
- ₹5 crores
- ₹10 crores
- ₹20 crores