NBFC registration in India: the path, in plain terms

Starting an NBFC is a regulated, multi-month journey. The steps below are an overview; the details change with your category and RBI directions.

Step 1: Choose your category

Your core activity decides the category (for example ICC, MFI, HFC, P2P or Account Aggregator) and with it the minimum Net Owned Fund.

Step 2: Build the company

Incorporate a company with suitable objects, bring in the required capital, and ensure directors and shareholders meet the fit-and-proper criteria.

Step 3: Plan and document

Prepare a board-approved business plan with projections, credit policy and risk framework, and collect KYC, credit reports and net-worth certificates.

Step 4: Apply and respond

File on the RBI portal and respond to queries promptly. Review and background checks usually take months.

Step 5: After registration

Put policies in place and keep up with periodic returns, audit and compliance. Many new NBFCs engage an advisor for annual compliance.

Always verify the current capital and eligibility requirements with RBI directions or a qualified professional.