NBFC Compliances

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Payal Gupta 15 Mar 2024 4,017 Views 0 comment Corporate Law | Articles
Introduction: Non-Banking Financial Companies (NBFCs) operate within a
Sponsored regulatory framework governed by the Reserve Bank of India (RBI). To ensure
adherence to regulations, NBFCs must comply with various filings and
timelines outlined by the RBI. This article serves as a consolidated guide for
NBFC compliance officers, CFOs, and company secretaries, offering insights into the
regulatory landscape and essential filings required for regulatory compliance.

NBFC: A Non-Banking Financial Company (NBFC) is a company registered under the

Companies Act, 1956 engaged in the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by Government or local authority or other
marketable securities of a like nature, leasing, hire-purchase, insurance business, chit
business but does not include any institution whose principal business is that of agriculture
activity, industrial activity, purchase or sale of any goods (other than securities) or providing
any services and sale/purchase/construction of immovable property. A non-banking
institution which is a company and has principal business of receiving deposits under any
scheme or arrangement in one lump sum or installments by way of contributions or in any
other manner, is also a non-banking financial company (Residuary non-banking company).

OBJECTIVE

Non-Banking Financial Companies (NBFCs) are directed by Reserve Bank of India to submit
various returns w.r.t., to their deposit acceptance, prudential norms compliance, ALM etc.
within a specified timelines in accordance with various Master Directions. NBFC

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Compliances and Returns are comprehensive and require time-bound reporting, so as to
avoid penal action by RBI. This is an effort toconsolidate the Compliances to provide a handy
guide for all Compliance Officers, CFOs, Company Secretaries, to have a holistic view of
compliance filing dates across various applicable laws, along withRegulating documents for
NBFC Industry.

ABBREVIATIONS

SAC Statutory Auditor Certificate

DNBS Department of Non-Banking Supervision

NBFC-ND-SI Non Deposit taking Systemically Important

NBFC Non-Banking Financial Company

HFC Housing Finance Company

FAFT Financial Action Task Force

NBFC-UL Non-Banking Financial Company- Upper Layer

NBFC-ML Non-Banking Financial Company- Middle Layer

NBFC-BL Non-Banking Financial Company- Base Layer

NOFHCs Non-Operative Financial Holding Company

LCR Liquidity Coverage Ratio

CRILC Central Repository of Information on Large Credits

SMA Special Mention Account

ALM Asset Liability Management

NBFCs-D Non-Banking Financial Company taking deposit

NBFC-CIC Non-Banking Financial Company- Core Investment Company

YEARLY FILINGS/INTIMATIONS

S.No. Particulars Description Applicability Filling Regulating

Dates Document

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1. DNBS10 Statutory Auditor All NBFC and 31st Master
Certificate (SAC) ARC December Direction–
Return for Continued Reserve
Regulatory Bank of
Compliance India (Filing
of
Supervisory
Returns)
Directions,
2024

2. DNBS02 Financials details Non Deposit 30th May Master

like components of Taking Non - Direction-
assets and liabilities, NDSI NBFC
prudential norms Returns

3. Schedule- I Details of public HFC 30th June Master

Return deposits, category Circular-
wise distribution of Returns
housing loan to HFC
individual or state or
union territories

4. Statutory Statutory auditor HFC 30th June Master

Auditor certificate(SAC) Circular-
Certificate return on certificate Returns
of registration as HFC
housing finance
company

5. FAFT For Compliance with HFC 30th June Master

Compliance the Norms specified Circular-
Certificate by RBI, in respect of Returns
Investment from HFC
FATF non-compliant
jurisdictions

6. Declaration Board resolution for NBFC – ICC 30th April Master

not accepting/ Direction-
holding any public NBFC-
deposit Acceptance
of Public
Deposit
Direction,
2016

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7. Declaration Board Resolution for Company which 30th April Master
Acquisition of has acquired Direction-
Shares/ Securities of shares/ securities NBFC-
its own Group of its own group Acceptance
/Holding/ Subsidiary /holding/ of Public
Companies subsidiary Deposit
companies Direction,
2016

8. Form – A Regarding All NBFCs 21st April Master

Certificate appointment of Direction–
Statutory Central Reserve
Auditor(SCA)/ Bank of
Statutory Auditor India (Filing
(SA) of
Supervisory
Returns)
Directions,
2024

HALF-YEARLY FILINGS/INTIMATIONS

S. Particulars Description Applicability Filling Dates Regulating

No. Document

1. Statement NBFC Participating NBFC including 30th April, Master

on Interest in Interest Rate HFC 31st Direction-
Rate Future Exchanges participating in October Scale
Futures for hedging their interest rate Based
(IRF) underlying future Regulation,
Transaction exposures exchanges Master
Circular-
Returns
HFC

2. Schedule- Information on HCF 12th May Master

IIReturn various Prudential 12th Circular-
Norms i.e., Capital November Returns
Adequacy, Asset HFC
Classification,
Provisioning Net
Owned Funds etc.

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3. ALM-II Statement of HFC taking 12th May Master
Structured Liquidity deposit and all 12th Circular-
and Interest Rate non-deposit November Returns
Sensitivity taking HFC with HFC
asset size of
Rs.100 cr. And
above

4. FDI– SAC Compliance with HFC having 30th April, Master

the terms and Foreign Direct 31st Circular-
conditions of Investment October Returns
foreign direct HFC
investment (FDI)-
SAC

QUARTERLY FILINGS/INTIMATIONS

S. Particulars Description Applicability Filling Dates Regulating Document

No.

1. Annex X Report on NBFC having 30th June Master Direction-Scale

Pledged asset size of Based Regulation
30th
Securities in Rs. 100cr
September
their favour by .And above
the borrowers 31st
for availing December
loans
31st March

2. Notification Statement to All NBFC 30th June Master Direction– HFC,

/Email Communicate including HFC Master Direction- Scale
30th
Principal and Based Regulation
September
interest, EMI
amount, 31st
number of EMIs December
left
31st March

3. Report on Total Having All NBFC 30th June Master Direction-Scale

Exposure Assumed Based Regulation
30th
Exposures
September
against
borrowers in 31st
excess of the December
normal
31st · March
exposure limits

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4. Statement Statement for NBFC-ML, 15th July Master Direction-Scale
Change in NBFC-UL, Based Regulation,
15th October
Directors as per HFC Master Direction-HFC
Fit and Proper 15th January
Criteria
15th April

5. DNBS01 Financial NBFC-UL, 21st July Master Direction–

Details, viz. Reserve Bank of India
NBFC-ML 21st October
Components of (Filing of Supervisory
except NBFC-
Assets and 21st January Returns) Directions,
CIC
Liabilities, Profit 21st April 2024
and Loss
Account,
Exposure to
Sensitive
Sectors

6. DNBS03 Important NBFC-UL, 21st July Master Direction–

Prudential NBFC-ML Reserve Bank of India
21st October
Parameters- except NBFC- (Filing of Supervisory
Contains CIC 21st January Returns)Directions,
prudential 21st April 2024
norms,
e.g.,capital
adequacy,
provisioning
etc.

7. DNBS04A Statement on NBFC-UL, 21st July Master Direction–

Short Term Reserve Bank of India
NBFC-ML 21st October
Dynamic (Filing of Supervisory
Liquidity (except 21st January Returns) Directions,
(STDL) NBFC-SPD), 2024
21st April
contains data NBFC-BL with
on Asset asset size of
Liability ₹100 crore
Mismatches and above
(ALM)and solely or at
Interest Rate Group level,
Sensitivity(IRS), excluding
liquidity risk of Type-I NBFCs,
exposures. and
NOFHC,P2Ps,
AAs, and
Mortgage
Guarantee
Companies

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8. DNBS07 ARCs Important ARC 21st July Master Direction–
Financial Reserve Bank of India
21st October
Parameters- (Filing of Supervisory
contains data 21st January Returns) Directions,
on assets and 21st April 2024
liabilities,
assets acquired
from Banks/FIs,
acquisition cost,
trusts formed,
recovery status
of acquired
assets etc.

9. DNBS13 Return on All NBFCs 21st July Master Direction–

Overseas Reserve Bank of India
21st October
Investment (Filing of Supervisory
details for all 21st January Returns) Directions,
NBFCs having 2024
21st April
overseas
investment

10. Notification/Email Communicating HFC 10th July Master Direction-HFC

Particulars of
10th October
Public Deposit
to Respective 10th January
Branches
10th April

11. Annexure VI Report on HFC 7th July Master Circular-Returns

Detection and HFC
7th October
Impounding of
Counterfeit 7th January
Notes
7th April

12. Schedule-III Details on HFC 15th July Master Circular-Returns

Return Statutory HFC
15th October
Liquidity Ratio
(SLR),structural 15th January
liquidity
15th April
&interest rate
sensitivity

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13. Schedule-IV Financial HFC 15th July Master Circular-Returns
Return details viz. HFC
15th October
Components of
Asset and 15th January
Liability, Profit
15th May
and Loss
Account,
Exposure to
Sensitive
Sector

14. ALM-I Statement on HFC taking 10th July Master Circular-Returns

Short Term deposit and all HFC
10th October
Dynamic non-deposit
Liquidity taking HFC 10th January
(STDL) with asset size
10th April
of Rs.100 cr.
And above

15. 20- Major Details of large HFC 10th July Master Circular-Returns
Exposure Return borrowers HFC
10th October
10th January
10th April

16. Broad Liquidity Details of Deposit taking 10th July Master Circular-Returns
Return liability and HFC HFC
10th October
asset of large irrespective of
HFC asset size 10th January
10th April

17. Overseas Report on Deposit and 15th July Master Circular-Returns

Investment overseas non-deposit HFC
15th October
Report investment taking HFC
details 15th January
15th April

18. Periodic Report Analysis of Internal 10th July Master Direction-RBI

complaints on Ombudsman (Internal Ombudsman
10th October
activities of of Regulated for Regulated Entities)
internal Entity 10th January Directions, 2023
ombudsman
10th April

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19. FMR4 Capture the NBFC-UL, 21st July Master Direction –
updated NBFC -ML, Reserve Bank of India
21st October
information and NBFC-BL (Filing of Supervisory
report on which are 21st January Returns)Directions,2024
dacoities / NBFC-
21st April Master Direction -
robberies / theft ICC,NBFC-
monitoring of frauds in
/burglaries MFI, NBFC-
NBFCs (reserve bank)
Factors having
directions, 2016
asset size of
₹500crore and
above

20. DNBS02 Important NBFC-BL 15th July Master Direction–

Financial except NBFC– Reserve Bank of India
15th October
Parameters P2P (Filing of Supervisory
15th January Returns)Directions,
2024
15th April

21. Appendix VI-A Public All NBFC 31st March Master Direction– Scale
Disclosure on Based Regulations
30th June
the soundness
of Entities 30th
liquidity risk September
management
31st
framework and
December
liquidity position

22. DNBS 11 CICs Important NBFC – CICs 21st Master Direction–

Financial July Reserve Bank of India
Parameters (Filing of Supervisory
21st
Returns) Directions,
October
2024
21st
January
21st
April

23. DNBS 12 CICs Important NBFC – CICs 21st Master Direction–

Financial July Reserve Bank of India
Parameters (Filing of Supervisory
21st
Returns) Directions,
October
2024
21st
January
21st
April

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24. DNBS 14 P2P- Important NBFC – P2Ps 21st Master Direction–
Financial July Reserve Bank of India
&Prudential (Filing of Supervisory
21st
Parameters Returns) Directions,
October
2024
21st
January
21st
April

25. Financial Consolidated All NBFC and 21st Master Direction–

Soundness Financial ARC (except July Reserve Bank of India
Indicators(FSI) Soundness HFC) (Filing of Supervisory
21st
Indicators Returns) Directions,
(FSI)to October 2024
International 21st
Monetary January
Fund(IMF)
21st
April

MONTHLY FILINGS/INTIMATIONS

S. Particulars Description Applicability Filling Regulating

No. Dates Document

1. Annex XXV Reporting of NBFC – UL By end of Master

Large each Direction-Scale
Exposure month Based
Regulation

2. Annex XIX Information All NBFC By end of Master

of borrowers including HFC each Direction-Scale
whose month Based
secured Regulation,
assets is Master
possessed Direction-HFC

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3. DNBS04B Return on NBFC-UL,NBFC- Within Master
Structural ML except 15days Direction–
Liquidity & Standalone from end of Reserve Bank
Interest Primary Dealers each of India (Filing
Rate ,and NBFC-BL month of Supervisory
Sensitivity with asset size of Returns)
₹100 crore and Directions,
above solely or a 2024
Group level,
excluding Type-I
NBFC, and
NOFHC, P2P,
AA, and
Mortgage
Guarantee
Companies

4. DNBS08 CRILC main NBFC-ULNBFC- Within Master

return ML (except 15days Direction–
NBFC-CIC),and from end of Reserve Bank
NBFC-BL which each of India (Filing
are NBFC- month of Supervisory
ICC,NBFC- Returns)
MFI,NBFC- Directions,
Factors having 2024
asset size of
₹500crore and
above solely or
at Group level

5. Annexure XVII Information HFC By 15th of Master

on wilful subsequent Direction-HFC
default of 25 month
lakh or
above to
credit
information
company

6. Schedule –V Capture HFC Within Master

trend in 10days Circular-
loans and from end of Returns HFC
advances, month
borrowings,
asset
quality,
interest rate
structure

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 7. Report on Cash Report on All NBFC By 15th of Master
Transaction(CTR) Cash succeeding Direction -
Transaction month Know Your
(CTR) to Customer
FIU India (KYC)Direction,
2016

WEEKLY FILINGS/INTIMATIONS

S. Particulars Description Applicability Filling Regulating

No. Dates Document

1. DNBS09- NBFCs having NBFC-UL, NBFC –ML On or Master

CRILC aggregate except NBFC-CICs, before Direction–
RBD exposure of ₹5 and NBFC-BL which Wednesday Reserve
crore and are NBFC-ICC,NBFC- of the Bank of
above to a MFI,NBFC-Factors following India (Filing
single borrower having asset size of week of
reported in ₹500crore and above Supervisory
SMA-0 for the solely or at Group level Returns)
week Directions,
2024

2. LCR Capture HFC taking deposit, all Within Master

Return Liquidity non –deposit taking 5days from Circular-
Coverage of HFC with asset size of the week Returns
the HFC Rs.5000 cr. And above ending on HFC
Friday

Conclusion: Adhering to NBFC compliances is crucial for maintaining regulatory compliance

and avoiding penal actions by the RBI. By understanding the regulatory requirements and
diligently following the prescribed timelines for filings and intimations, NBFCs can navigate
the compliance landscape effectively. Stay informed, stay compliant, and ensure the smooth
operation of your NBFC within the regulatory framework.

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