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Non-Banking Financial Company
HOW TO CHOOSE THE BEST NBFC TAKEOVER CONSULTANT IN INDIA
KEY HIGHLIGHTS
OUTLINE - What is NBFC? - Difference Between NBFC and The Bank - Criteria For NBFC Registration - Documents Required For Registration - Registration Procedure For NBFC - Takeaway
W H A T IS N B F C ?
A non-banking financial company, commonly known as NBFC, is a company registered under the Companies Act, 2013, which is involved in providing loans, credit facilities, financial assets, currency exchange, ending loans, and many other financial services. In India, an NBFC registration is done by the rules of the RBI Act. The process of taking the NBFC by the RBI has been simplified. NBFC is an easier process than NBFC registration. In taking the NBFC, the NBFC acquirer should first work diligently and conduct a financial review of the destination. Under it, an MOU has been signed with advance money. In this case, NBFC Takeover Consultant can help you with the detailed procedure.
NON-BANKING FINANCIAL COMPANY
THE MAIN DIFFERENCE BETWEEN THE NBFC AND THE BANK Now that we have analyzed the activities taken by the institution, let’s analyze how NBFCs and banks differ between nature and their implementation
KEY DIFFERENCES
NBFC was first incorporated as a company under the Indian Companies Act, 1956, and then applied for an NBFC license from the RBI, on the other hand, it was registered under the Banking Regulatory Act of 1949. Banks are government-authorized financial intermediaries that are chartered to accept deposits and provide loans to the public. However, NBFC is a company that provides banking services to small sections of the society without a bank license. Banks are authorized to accept demand deposits, but NBFCs are not authorized to accept deposits that can be repaid on demand. Since NBFCs are established as companies under the Companies Act, they are allowed to accept up to 100% of foreign investment. But, banks can only accept up to 74% of the total foreign investment. Like a bank, NBFCs do not form an integral part of the payment and settlement cycle in the country. The RBI has directed banks to maintain reserve ratios such as CRR or SLR. The NBFC has no such obligation. Deposit Insurance and Credit Guarantee Corporation (DICGC) provides deposit insurance facilities to depositors of banks. Such facilities are not available in the case of NBFC. NBFCs are not involved in creating credit as banks do for their customers Banks provide services such as overdraft facilities, passenger check issues, fund transfers, etc. Such services are not provided by NBFC. As banks do not allow NBFCs to issue checks on their own.
DIRECTOR PROFILE
WHAT ARE THE ELIGIBILITY CRITERIA FOR NBFC REGISTRATION? According to Section 45 (1A) of the RBI Act, an individual or company interested in starting a loan or investment business in India is required to register a company that meets the requirements for NBFC.
The director should have knowledge and experience in finance, credit, and banking. NBFC BUSINESS PLAN
The company should have a comprehensive business plan for the next five years. FUNDS
As a net ownership fund, the shareholders must have Rs 2 crore Investment should not be funded. CREDIT HISTORY
Directors and partners should not have any writeoffs. THE QUALITY OF CAPITAL
The net ownership fund must be taxed and all legal compliance with the company’s management must be clear and legally compliant.
THE DOCUMENTS REQUIRED FOR NBFC REGISTRATION ARE Company MOA Registration certificate Income Tax Certificate Unit price certificate Clear the banker report
Evidence of Education Credit reports from directors and partners Certificates of Experience from Directors and Partners Organization Matrix Various policies
WHAT IS THE PROCEDURE FOR NBFC REGISTRATION?
01
According to the Companies Act, 2013, the applicant must register himself or herself as a public company or a relevant private company. The company must be registered with the regulations of the Ministry of Corporate Affairs.
02
Applicants should apply on the RBI site which is known as the Cluster of System of Metadata for Official Statistics (COSMOS).
03 05
Along with the online application, a physical copy of the form is required to be submitted to the regional office of the Reserve Bank of the applicant along with the required documents.
A window tab will present an Excel application form that is available for download.
04 06
Upon entering the RBI website by the applicant, the login page of the Cluster of System of Metadata will be asked to click on the Company Registration tab for the official statistics application.
Applicants must download the appropriate application form, which is an NBFC form.
07 09
In Excel form, the applicant needs to fill in the correct name of the regional office in the “C8” filed in the “Annex-2 Identity Feature”.
Upon receipt of the CARN number by the applicant, the application along with all the supporting documents must be submitted to the Regional Office of the Reserve Bank of India.
08 10
After submitting the form, the applicant will be issued a Company Application Reference Number (CARN) for a Certificate of Approval.
The RBI will examine the application form and the relevant documents and send them to the headquarters.
NOTE: If the submitted application is correct, the required documents are complete and the records are clear, the Reserve Bank of India headquarters will issue NBFC registration.
Demand for this specialty has grown significantly as a result of recent corporate scandals. Banks have a limited limit because they are bound by strict rules and regulations, therefore, they are unable to meet everyone’s needs. There was a huge gap between demand and supply, leaving a void .The NBFCs entered the place with great cleverness and tactical skill and today they are a key player in shaping the future of the country. Like other services, the same reasons help short listing and selecting the best NBFC takeover consultant in India. You need to do through research, review, and referral to find the ideal one. NBFC takeover consultant has proper knowledge to deal with such cases. When you choosing the NBFC takeover consultants, you must visit their website and gather information on their client’s feedback. These parameters will help you to find the perfect one to assist you in every possible ways.
KEY TAKEAWAY
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