Dear Experts, Is there any particular registration required to open of Branch by NBFC, if so please let us have a procedures Regards Harikrishnan
From India, Delhi
1From India, Delhi
Hi Harikrishnan,
Yes, if a Non-Banking Financial Company (NBFC) in India wishes to open a branch, it needs to follow certain procedures and obtain the necessary approvals. Here are the steps typically involved:
Eligibility and Prerequisites:
The NBFC should have a minimum net owned fund (NOF) of ₹25 lakhs.
Board Approval:
The board of directors of the NBFC must pass a resolution approving the opening of a branch.
Application to RBI:
The NBFC needs to submit an application to the Reserve Bank of India (RBI) seeking permission to open a branch.
This application should include details like the proposed location of the branch, reasons for opening it, and a business plan for the branch.
Compliance with RBI Guidelines:
Ensure that the NBFC complies with all the guidelines and regulations set forth by the RBI for opening branches.
Submission of Documents:
The NBFC will be required to submit the following documents along with the application:
Certified copy of the board resolution approving the opening of the branch.
Certified copy of the audited balance sheet and profit and loss account for the previous three years.
A copy of the audited balance sheet as of the last date of the month preceding the application.
A copy of the latest inspection report (if any) from the RBI.
Due Diligence:
RBI may conduct due diligence on the NBFC before granting approval.
Approval from RBI:
Once the RBI is satisfied with the application and due diligence, it will issue a formal approval for opening the branch.
Registration of Branch:
After obtaining the RBI's approval, the NBFC can proceed to register the branch with the relevant authorities, such as the Registrar of Companies (RoC) or any other applicable authority.
Compliance Post Opening:
Ensure that the branch complies with all the regulatory and reporting requirements specified by RBI.
Please note that this is a general outline and the specific procedures and requirements may vary depending on the type of NBFC and any updates in regulatory policies. It is always advisable to consult with legal and financial experts or seek guidance from the RBI for the most up-to-date and accurate information.
Regards
From India, Bangalore
Yes, if a Non-Banking Financial Company (NBFC) in India wishes to open a branch, it needs to follow certain procedures and obtain the necessary approvals. Here are the steps typically involved:
Eligibility and Prerequisites:
The NBFC should have a minimum net owned fund (NOF) of ₹25 lakhs.
Board Approval:
The board of directors of the NBFC must pass a resolution approving the opening of a branch.
Application to RBI:
The NBFC needs to submit an application to the Reserve Bank of India (RBI) seeking permission to open a branch.
This application should include details like the proposed location of the branch, reasons for opening it, and a business plan for the branch.
Compliance with RBI Guidelines:
Ensure that the NBFC complies with all the guidelines and regulations set forth by the RBI for opening branches.
Submission of Documents:
The NBFC will be required to submit the following documents along with the application:
Certified copy of the board resolution approving the opening of the branch.
Certified copy of the audited balance sheet and profit and loss account for the previous three years.
A copy of the audited balance sheet as of the last date of the month preceding the application.
A copy of the latest inspection report (if any) from the RBI.
Due Diligence:
RBI may conduct due diligence on the NBFC before granting approval.
Approval from RBI:
Once the RBI is satisfied with the application and due diligence, it will issue a formal approval for opening the branch.
Registration of Branch:
After obtaining the RBI's approval, the NBFC can proceed to register the branch with the relevant authorities, such as the Registrar of Companies (RoC) or any other applicable authority.
Compliance Post Opening:
Ensure that the branch complies with all the regulatory and reporting requirements specified by RBI.
Please note that this is a general outline and the specific procedures and requirements may vary depending on the type of NBFC and any updates in regulatory policies. It is always advisable to consult with legal and financial experts or seek guidance from the RBI for the most up-to-date and accurate information.
Regards
From India, Bangalore
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