Reserve Bank Of India has issued ( Scale Based Regulations) In Year 2023 , repealing the erstwhile ND-SI and ND-NSI Master Directions , bring the NBFCs into more structured and criteria based compliances as per their Assets Size. The criteria further classify the NBFCs in the Top Layer ( which generally remains empty ) except the very large NBFCs which required strict adherence and supervision , while Upper Layer includes Cherry picked NBFCs and mostly in Middle Layer and Base Layer , Account Aggregators , P2P and NBFCs without any customer interface and access to public funds remain in Base Layer, While IDFs, Housing Finance Companies In Middle Layer disregarding their assets size , while NBFCs having assets size of more than 1000 Crore in Middle Layer and below that In Base Layer , the Prudential Regulations Like Exposure Limit , Agri Advances , IPO funding Ceiling , Follow Up of ICCAP Provisions based on BASEL 3 Pillar 2 , Having Various Board and Executive level committees and Policies are requirements of NBFC Middle layer. the base layer NBFCs are subject to ease compliances as compared to ML NBFCs
RBI has launched Certain Reporting Portals for the NBFCs in all layers to comply with the MIS reporting , Prior Approvals and Regulatory Supervision for all kind of NBFCs . The brief details of such portals and basic understanding is must for any professional would like to keep abreast himself/herself with the same
PRAVAAH – the Pravaah portal of RBI is to get prior approval and NOC from the regulator for any changes in directors ,changes in shareholding beyond the prescribed limit , NOC for change in name , shifting of registered office, acceptance of public deposit ( for NBFC having license for the same ), the entity has to submit requisite documents as per the checklist and general compliances duly signed by the Head of the Institution or Authorized Personnel which will be routed to Respective Department of Supervision(DOS ) , currently RBI has made certain changes in the portal where only authorized user duly approved by the institutions admin can file the application.
- Any changes in director exceeding 30% from the preceding one requires prior approval from RBI before the appointment is proposed in the ensuing AGM/ EOGM.
- Any Changes in shareholding including progressive changes exceeding 26% requires Prior approval of RBI.( here one interpretation challenge arises regarding the change in shareholding , what is RBI intent is either single shareholder or PACs crosses the threshold of 26% needed prior approval of RBI , in case of listed companies, Before making Offer by the shareholder(s) as per takeover regulations it needed prior approval of RBI )
- Basic Documents Like CIBIL report , Bankers report , Group Organogram , Declaration CUM undertaking by the proposed appointee, pre and post shareholding pattern, board affirmation in form of resolution towards adherence of various RBI guidelines and undertaking , Statutory auditors certificate specifying the FA / FI criteria ,PBC ( for HFCs) etc. is needed for approval
DAKSH – The RBI launched DAKSH Portal with the intent of streamlining the various supervisory emails/ circulars / directions / Reply sought from the specific Regulated Entity , The purpose of DAKSH is to integrate and supervise the time bound responses to be received from the Regulated Entity by the respective department of RBI , The portal contains several module and REs are expected to assign SE Admin Maker and Checker Role For Each Such Module ( Except Base Layer NBFC ) the response submitted by the Maker are Reviewed by checker before final submission to RBI.
CIMS – RBI required all NBFCs to file periodic returns called DNBS returns for Offsite supervisory functions , it helps RBI to know that company is been able to comply with the respective guidelines and directions issued thereunder , including early warning signals and PCA (if any ) , the most returns requires Net owned fund , Exposures , credit concentration , movement of NPAs , Liquidity position and Assets Liability mismatches , Auditor report and SAC , the timeline to submit the returns is prescribed under MD (filing of supervisory returns ) circular which is within 21 days for quarterly returns, and in 15 days for monthly returns , just like any other procedure used in banking , CIMS also has Admin 1 and 2 and further users can be assigned.
Except this NBFCs are also required to Register with Following :-
CERSAI – For Submission of Charges created on the assets to be submitted to CERSAI within 30 days as per SARFAESI act. It includes web based filing where generated JSON file can be submitted or Batch upload where Upto 1000 Batches can be submitted in single go , NBFCs who do AOR also has to report to CERSAI within 30 days , the reporting includes Charges creation , satisfaction and modification
CKYC – KYC become important part of Banking system , and as per the PMLA it become imperative for NBFCs to Collect KYC documents for each account based relationship which is segregated on the basis of type of entity , CKYC which is managed by CERSAI , issues CKYC number for the each entity which also helps in not to provide same set of KYC documents while dealing with Various RE . Its required for NBFCs having customer interface to register with CKYC portal by Institutions Admins and Branches and Region Division of role to complete the KYC with CKCY within 7 days of account based relationship , just like CERSAI there is also an option of BULK SEARCH , UPLOAD ,AND Download to save time and efforts for NBFCs having good volume of account based relationship everyday and to reduce time and efforts in clerical task.
CIC – Currently In India Four CICs are in operations , viz. CIBIL, EQUIFAX , EXPERIAN and CRIF high mark , RBI on time to time basis issues directions and reporting format which called UCRF ( Uniform Reporting Format) to be uploaded for consumer and commercial lending transaction which captures the repayment pattern of the borrowers including classification of accounts as SMA , NPA, Doubtful , Loss , and Willful defaulter. while consumer data can be submitted in .txt format , the commercial data must be submitted through SFTP.
NeSL- NeSL is sole Information Utility under IBC and All REs are expected to register and file form C to it. the purpose of NeSL to establish claims before the NCLT proceedings ,Even individual data ,ie. creation , modification and event of default has to be submitted to NeSL Within 30 Days.
CRAMIS – HFCs are regulated by the RBI but supervisory powers are vested with NHB , all HFCs has to register with the CRAMIS portal where schedule returns are required to be filed with NHB on timely basis for offsite inspection.
Please note its a brief intro about the various reporting portal developed by the RBI , the information provided herein is based on practical point of view only and should not be relay upon any kind of decision.
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