In the intricate realm of financial regulation, ensuring compliance is paramount, particularly for Systematically Important Non-Deposit Taking Non-Banking Financial Companies (NBFCs). This article elucidates the essential returns NBFCs must file to adhere to regulatory requirements set forth by the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India (RBI).
In the dynamic landscape of financial regulation, it’s crucial for Systematically Important Non-Deposit Taking Non-Banking Financial Companies (NBFCs) to navigate compliance seamlessly.
The Department of Non-Banking Supervision (DNBS) of RBI shoulders the pivotal responsibility of regulating and supervising NBFCs, governed by provisions outlined in Chapter III B and C, and Chapter V of the Reserve Bank of India Act, 1934.
To uphold transparency and regulatory adherence, NBFCs are mandated to file various returns with the DNBS within specified timeframes. Let’s delve into the different kinds of returns required to be filed by a NBFC – NDSI
- DNBS01- Important Financial Parameters
| Return Description |
Frequency |
Entities required to submit return |
| The return captures financial details, viz. Components of assets and liabilities, profit and loss account, exposure to sensitive sectors etc. For NBFC-D and NBFC-NDSI. |
Quarterly |
NBFCS-Deposit Taking, NBFC – NDSIS (having asset size> ₹500 crore), multiple NBFCs in the same group whose asset size together is of ₹500 crore & above, NBFC-factors and NBFC-NOFHCS |
- DNBS03- Important Prudential Parameters
| Return Description |
Frequency |
Entities required to submit return |
| The return captures compliance with various prudential norms, e.g. Capital Adequacy, Asset Classification, Provisioning, NOF etc. for NBFC-Deposit taking and NBFC-NDSI. |
Quarterly |
NBFCs-Deposit Taking, NBFC – NDSIs (having Asset Size > ₹500 crore), Multiple NBFCs in the same group whose asset size together is of ₹500 crore & above, NBFC-Factors and NBFC-NOFHCs |
- DNBS04A- Short Term Dynamic Liquidity (STDL)
| Return Description |
Frequency |
Entities required to submit return |
| To capture the details of mismatch in projected future cash inflows and outflows based on the business projections. |
Quarterly |
NBFCs-Deposit Taking, NBFC – NDSIs (having Asset Size > ₹500 crore), Multiple NBFCs in the same group whose asset size together is of ₹500 crore & above, NBFC-Factors & NBFC- Core Investment Companies (CICs) & NBFC-NDs having asset size between ₹100 crore and ₹500 crore. Return not to be filed by NBFC-NOFHCs |
- DNBS04B- Structural Liquidity & Interest Rate Sensitivity
| Return Description |
Frequency |
Entities required to submit return |
| To capture (i) The details of mismatch in projected future cash inflows and outflows based on the maturity pattern of assets and liabilities at the end of the reporting period for NBFCs-NDSI; (ii) The details of interest rate risk. |
Monthly |
NBFCs-Deposit Taking, NBFC – NDSIs (having Asset Size > ₹500 crore), Multiple NBFCs in the same group whose asset size together is of ₹500 crore & above, NBFC-Factors & NBFC- Core Investment Companies (CICs) & NBFC-NDs having asset size between ₹100 crore and ₹500 crore. Return not to be filed by NBFC-NOFHCs |
- DNBS10- Statutory Auditor Certificate (SAC) Return
| Return Description |
Frequency |
Entities required to submit return |
| To ensure continued regulatory compliance for all NBFCs. |
Annual |
All NBFCs and ARCs |
- DNBS13- Overseas Investment Details
| Return Description |
Frequency |
Entities required to submit return |
| To capture details of overseas investment for all NBFCs having overseas investment. |
Quarterly |
All NBFCs and ARCs |
| Return Description |
Frequency |
Entities required to submit return |
| Information to be submitted by the NBFCs regarding appointment of Statutory Central Auditor (SCA)/ Statutory Auditor (SA) |
Annual |
All NBFCs |
Conclusion: Navigating regulatory compliance is a non-negotiable aspect for NBFCs to sustain in the financial landscape. Understanding and fulfilling the requirements of DNBS returns not only ensure adherence to regulations but also fortify trust and transparency within the financial ecosystem.
