On May 20, 2014, RBI announced a simplified documentation process for Non-Banking Financial Companies (NBFCs).
With immediate effect, there will be a common application form for NBFCs, Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs), NBFC-Factors and Infrastructure Debt Fund – Non-Banking Financial Companies (IDF-NBFCs).
The application form for Core Investment Companies (CICs) has been redesigned and there are two checklists of documents – one for registration as Non-Banking Financial Company- Infrastructure Finance Companies (NBFC-IFC) and the other for registration as IDF-NBFC.
During the course of business, a registered NFBC might decide to convert to IFC/MFI/Factor. In such a scenario the company can simply make an application for conversion on its letterhead accompanied by the original certificate of registration and all the documents as given in the checklist. The Reserve Bank will, after scrutiny of documents, make a suitable remark on the Certificate of Registration for having converted to the new status.
RBI has made it clear that the checklists mentioned are indicative and not exhaustive.
The Reserve Bank can, if necessary, call for any further documents to satisfy itself on the eligibility for obtaining registration as NBFC.
To avoid delay from the applicant company in submission of the required information, the applicant company must respond within a stipulated time of one month failing which the application/request for conversion along with all the documents will be returned to the company for submission afresh with the required information/documents.