NBFC Compliance and Return

The Non-Banking Financial Companies (NBFCs) are required to submit various returns to RBI w.r.t their deposit acceptance, prudential norms compliance, ALM etc. in accordance with Master Direction- Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016. The master directions lay down the foundation for RBI compliant and safe NBFC operational practices. NBFC Compliances and Returns are comprehensive and need to be read carefully so as to avoid penal action by RBI.

Return to be submitted by Non-Deposit taking NBFC

NBFC having assets size below Rs. 100 Cr (NBFC-ND)

Name of Return Periodicity Time Period Details
1. Branch Info Return Quarterly 15 days Branch Details. NBFC having assets size of Rs. 50 cr and above.
2. Overseas Investment Return Quarterly 15 days Return to be submitted by NBFCs having overseas investment.
3. Return on FDI Half Yearly 30 days To capture compliance with the stipulated minimum capitalization norms
4. NBS-9 Annually 60 days Annual Return
5. SAC Annually 1 month Statutory Auditor Certificate within 1 month from the date of finalisation of Balance Sheet.

Not later than 31st December.

♦  NBFC having assets size Rs. 100 – 500 Cr (NBFC-ND)

Name of Return Periodicity Time Period Details
1.  Return on Important Financial Parameters Monthly 7 days Sources and Application of Funds, Profit and Loss Account, Asset Classification etc.
2. ALM-1 Quarterly 15 days Statement of Short Term Dynamic Liquidity
3. Branch Info Return Quarterly 15 days Branch Details
4. Overseas Investment Return Quarterly 15 days Return to be submitted by NBFCs having overseas investment.
5. Return on FDI Half Yearly 30 days To capture compliance with the stipulated minimum capitalization norms
6.  ALM-2 Half Yearly 30 days Statement of Structural Liquidity
7.ALM-3 Half Yearly 30 days Interest Rate Sensitivity
8. ALM Yearly Annually 15 days Disclosure in Balance Sheet. CRAR, Exp to Real Estate,
9.NBS-8 Annually 60 days Annual Return
10. SAC Annually 1 month Statutory Auditor Certificate within 1 month from the date of finalisation of Balance Sheet.

Not later than 31st December.

NBFC having assets size Rs. 500 Cr and above (NBFC-ND-SI)

Name of Return Periodicity Time Period Details
1. Return on Important Financial Parameters Monthly 7 days Sources and Application of Funds, Profit and Loss Account, Asset Classification etc.
2. ALM-1 Quarterly 15 days Statement of Short Term Dynamic Liquidity
3. Branch Info Return Quarterly 15 days Branch Details
4.  NBS-7 Quarterly 15 days Quarterly Return of Capital Funds, Risk-Asset Ratio (Supervisory Return)
5. Overseas Investment Return Quarterly 15 days Return to be submitted by NBFCs having overseas investment.
6. CRILC Quarterly 21 days Reporting to Central Repository of Information on Large Credits
7.Return on FDI Half Yearly 30 days To capture compliance with the stipulated minimum capitalization norms
8.  ALM-2 Half Yearly 30 days Statement of Structural Liquidity
9.      ALM-3 Half Yearly 30 days Interest Rate Sensitivity
10.  ALM Yearly Annually 15 days Disclosure in Balance Sheet. CRAR, Exp to Real Estate,
11.  NBS-8 Annually 60 days Annual Return
12.  SAC Annually 1 month Statutory Auditor Certificate within 1 month from the date of finalisation of Balance Sheet.

Not later than 31st December.

13.  SMA-2 Return Weekly On Every Friday Reporting of Special Mention Account status

As at the end of March every year, all NBFCs are required to submit;

♦ An annual certificate duly certified by the Statutory Auditors that the company is engaged in the business of NBFI requiring it to hold the CoR.

♦ The certificate shall also indicate the asset / income pattern of the NBFC for making it eligible for classification as AFC, Investment Company, or Loan Company.

♦ Audited financial statement along with Directors Report.

♦ Board Resolution of non-acceptance of public deposit by non-deposit taking NBFC.

♦ an annual return on Foreign Liabilities and Assets (FLA) by 15th July every year.

Return to be submitted by Deposit Taking NBFC

Deposit taking NBFC (NBFC-D)

Name of Return Periodicity Time Period Details
1. NBS-1 Quarterly 15 days Details of Assets and Liabilities
2. NBS-2 Quarterly 15 days Statement of Capital Funds, Risk Assets etc
3. NBS-3 Quarterly 15 days Return on Statutory Liquid Assets as per Section 45 IB of the Act
4. NBS-6 Monthly 7 days Details of Capital Market Exposure.

NBFCs-D having public deposit of > ₹ 20 crore Or asset size of> ₹ 100 crore

5. Overseas Investment Return Quarterly 15 days Return to be submitted by NBFCs having overseas investment.
6. Branch info return Quarterly 15 days Branch Details
7. CRILC Quarterly 21 days Reporting to Central Repository of Information on Large Credits
8. ALM (NBFC-D) Half yearly 30 days NBFCs-D having public deposit of > ₹ 20 crore Or asset size of> ₹ 100 crore
9.  Return on FDI Half Yearly 30 days To capture compliance with the stipulated minimum capitalization norms
10.  NBS-8 Annually 60 days Annual Return
11.  SAC Annually 1 month Statutory Auditor Certificate within 1 month from the date of finalisation of Balance Sheet.

Not later than 31st December.

12.  SMA-2 Return Weekly On Every Friday Reporting of Special Mention Account status

Notes:-

♦ All the NBFCs are required to put in place a reporting system for filing various returns within the prescribed timeframe. There should not be delay in submission of return for any reason such as the finalization/completion of the Audit of the annual accounts.

♦ The returns shall be filed on-line by an authorised official of the NBFC, who will be specifically authorised in this regard by the Board of Directors.

♦ The NBFCs need to strictly adhere to the timeframe fixed for submitting returns to RBI failing which concerned NBFCs would be liable for penal action as prescribed under the provisions of Chapter V of the RBI Act.

♦ It may be carefully noted that in case the information/particulars furnished by a NBFCs is found incorrect, Reserve Bank of India would take a serious view in the matter.

Disclaimer: This document developed for academic purposes only, is based on the information available in public domain. The author shall not be responsible for any loss or damage caused due to any action taken on the basis of information contained in this document. Any person wishing to act on the basis of the information contained in this document should do so only after cross checking with the original source.

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Qualification: CS
Company: KR CorpLink LLP
Location: New Delhi, New Delhi, IN
Member Since: 06 May 2020 | Total Posts: 1
CS Ravi Shankar, is the Founder & CEO of “KR CorpLink LLP" a Corporate Consultancy Firm and Proprietor of “RSK & Associates”, Company Secretary, having 7+ year of experience in the field of Secretarial, legal, Finance, Fund Raising, NBFC registration & its related matters, RBI Comp View Full Profile

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