NBFC Registration in India – RBI License, Process, Documents & Compliance (2026)

Starting a Non-Banking Financial Company (NBFC) is a strategic and well-planned way to enter India’s fast-growing financial services sector. However, NBFC registration in India is regulated by the Reserve Bank of India (RBI) under the provisions of the RBI Act, 1934 and requires strict compliance with eligibility, documentation and regulatory norms.

In this blog, Compliance & Registration Services (CRSPL) explains the complete process, eligibility, costs and compliance requirements for NBFC registration in 2026.

What is an NBFC?

An NBFC (Non-Banking Financial Company) is a company registered under the Companies Act, 2013 that provides financial services such as loans, investments, asset financing or microfinance.

Unlike banks, NBFCs do not hold a full banking license. However, they play a crucial role in financial inclusion and credit accessibility.

NBFC vs Bank – Key Difference in India

Understanding the NBFC vs bank difference in India is important: -

• NBFCs cannot accept demand deposits (like savings or current accounts)
• Only RBI-approved deposit-taking NBFCs (NBFC-D) can accept public deposits under strict regulations
• NBFCs are not part of the payment and settlement system
• They are regulated by the RBI but with a different framework than banks
• NBFCs often cater to niche segments and underserved markets

Types of NBFC in India

Choosing the right category is crucial. Common types of NBFC in India include: -

• Investment and Credit Company (ICC)
• NBFC-Microfinance Institution (NBFC-MFI)
• Asset Finance Company (AFC)
• Infrastructure Finance Company (IFC)
• Core Investment Company (CIC)

NBFC Registration Eligibility Criteria (RBI)

To apply for NBFC registration in India, companies must meet the following registration eligibility criteria (RBI): -

•  The Company must be incorporated under the Companies Act, 2013
• Minimum Net Owned Fund (NOF) of ₹10 crore (as per current RBI norms for new NBFCs)
• Directors must have a clean credit and financial background
• A well-structured and viable NBFC business plan for RBI application
• Relevant experience in financial services is preferred

Principal Business Criteria (50-50 Test)

As per RBI guidelines: -

• At least 50% of total assets must be financial assets and
• At least 50% of income must come from financial activities

NBFC Minimum Net Owned Fund Requirement

The NBFC minimum net owned fund requirement is: -

• ₹10 crore for new NBFC registrations (as per revised RBI framework)
• This ensures financial stability and credibility of the business

How to Get NBFC License from RBI – Step-by-Step Process (2026)

The NBFC registration process 2026 includes: -

1. Company Incorporation
   Register a Private Limited or Public Limited Company.

2. Capital Infusion
   Ensure ₹10 crore NOF is deposited and properly documented.

3. Documentation Preparation
   Prepare policies, financial projections and compliance frameworks.

4. Online Application
   Submit the application through RBI’s COSMOS portal.

5. Physical Submission
   Submit the required documents to the RBI regional office.

6. RBI Review & Due Diligence
   RBI evaluates: - 

• Business model
• Financial strength
• Promoter background

7. Certificate of Registration (CoR)
   Upon approval, RBI issues the NBFC license.

NBFC Registration Documents Required

The following NBFC registration documents are required: -

• Certificate of Incorporation
• MOA & AOA
• Board resolution for NBFC business
• Directors’ KYC and credit reports
• Net worth certificates certified by a Chartered Accountant
• Bank statements and financial records
• Detailed business plan
• Income tax returns and audited financials

Cost of NBFC Registration in India (2026)

There is no fixed government fee prescribed by the RBI for NBFC registration.

However, the cost of NBFC registration in India may include: -

• Professional and consultancy charges
• Legal and documentation costs
• Compliance setup and advisory

The overall cost varies depending on the business model, complexity and professional support involved.

NBFC Registration Time in India

The NBFC registration time in India is typically: -

• 4 to 6 months, depending on application quality and RBI review
• Timelines may extend if additional clarifications or documents are required

NBFC Compliance Requirements (RBI)

After registration, NBFCs must follow strict NBFC compliance requirements (RBI): -

• Filing periodic returns with RBI
• Statutory and internal audits
• KYC and Anti-Money Laundering (AML) compliance
• Implementation of Fair Practices Code
• Maintenance of capital adequacy norms
• Timely regulatory reporting

Failure to comply may lead to various penalties or regulatory action.

NBFC Registration Rejection Reasons (RBI)

Common NBFC registration rejection reasons (RBI) include: -

• Inadequate or unverified capital sources
• Weak or unrealistic business plan
• Poor financial background of promoters
• Incomplete or incorrect documentation
• Non-compliance with RBI guidelines

Can You Start an NBFC Without an RBI License?

A common question is how to start an NBFC without an RBI license.

NBFC activities require mandatory registration with RBI under Section 45-IA of the RBI Act, 1934.
Carrying out such activities without approval may lead to regulatory action and penalties.

Why Choose CRSPL for NBFC Registration?

Compliance & Registration Services (CRSPL) offers: -

• End-to-end NBFC registration assistance
• RBI-compliant documentation and business planning
• Expert advisory on NBFC structure and category
• Support in handling RBI queries and approvals

If you are looking for a trusted NBFC registration consultant in Delhi, CRSPL ensures a smooth and compliant registration process.

Conclusion

NBFC registration in India is a structured process that requires strong financial backing, proper documentation and strict regulatory compliance. With the updated RBI norms in 2026, businesses must ensure the key elements, such as accuracy and preparedness, at every step.

Partnering with experts like CRSPL can simplify the process, reduce delays and help you secure your RBI license efficiently, setting a strong foundation for your financial venture.

FAQs

1. What is the minimum capital for NBFC registration in India?
   The minimum capital required is ₹10 crore as Net Owned Fund for new NBFCs.

2. How to get an NBFC license from the RBI?
   You need to incorporate a company, meet capital requirements, prepare documents and apply through the RBI portal for approval.

3. What documents are required for NBFC registration?
   Key documents include incorporation papers, KYC of directors, net worth certificate, business plan and financial statements.

4. What is the difference between NBFC and Nidhi Company?
   NBFCs are regulated by RBI and can lend to the public, whereas Nidhi Companies operate among members and are regulated by the Ministry of Corporate Affairs.

5. How long does NBFC registration take?
   It generally takes 4 to 6 months, depending on RBI review and documentation quality.