Bank Statutory Audit
Statutory central and branch audit for public sector, private and co-operative banks.
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Banking & Financial Services
NBFC Registration & Compliance
Registration, layer classification, capital adequacy, regulatory returns and the policy framework an NBFC is expected to operate.
Overview
The scale-based regulatory framework decides almost everything else about an NBFC: which prudential norms apply, what capital must be maintained, which returns are due and how intensively the entity is supervised. Getting the classification and the policy architecture right at the outset is far cheaper than being told about it in an inspection report.
What this covers
How we help
NBFC registration
Certificate of Registration application, documentation and regulatory correspondence.
Layer classification advisory
Assessment against the scale-based framework and the norms that follow from it.
Capital adequacy and prudential norms
Net owned fund, capital-to-risk assets ratio, exposure limits and leverage monitoring.
IRAC and provisioning review
Income recognition, asset classification and provisioning against applicable directions.
Regulatory returns
Periodic supervisory returns and reporting to the regulator.
Policy framework
Fair Practices Code, KYC/AML policy, outsourcing, grievance redressal and board-approved policies.
Common questions
NBFC Registration & Compliance — questions we are asked
It places NBFCs into layers by size, activity and perceived risk, and the applicable prudential requirements, governance expectations and disclosure obligations follow from the layer. An entity that grows across a threshold inherits a materially heavier compliance load, so the classification should be monitored rather than assumed.
It depends on the layer and on the entity's own board-approved policy. Larger NBFCs are expected to operate a risk-based internal audit function with defined independence and reporting lines. We advise on the scope and frequency appropriate to the entity, and can carry out the work.
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Talk to us about nbfc registration & compliance
A short conversation is usually enough to establish whether this is the right route, and what it would involve.