What is the structure of NBFC?

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What is the structure of NBFC?

4.1 Overview – Regulatory framework of NBFCs shall be based on a four-layered structure– Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer.

What is the business model of NBFC?

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance …

How can I create a NBFC company in India?

Procedure to Incorporate an NBFC A company should first be registered under the Companies Act 2013 or should already be registered under the Companies Act 1956 as either a Private Limited or a Public Limited Company. The minimum net owned funds of the Company should be Rs. 2 Crore.

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What is the difference between NBFC and MFI?

NBFC means a non-banking financial company that performs functions similar to banks in the absence of banks in rural areas. MFI means for microfinance institutions which operate at a further smaller level than NBFC. MFI provides very small loans to the underprivileged sections of society.

What are regulatory framework of NBFC?

Under the SBR Framework, the RBI has introduced four scale-based layers for regulating NBFCs (base layer, middle layer, upper layer, and top layer). Going forward, all NBFCs will be bucketed and regulated under one of these layers.

Who is regulator of NBFC?

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III-B) and the directions issued by it.

How do I write a business plan for NBFC?

The steps involved in the procedure for NBFC Business Plan are as follows:

  1. Services Offered.
  2. Executive Summary.
  3. Draft a Basic Business Plan.
  4. Statement of Mission and Vision.
  5. Description of the Company.
  6. Business Structure.
  7. Budgetary Estimate.
  8. Background of Promoters.
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Who is required to register NBFC?

The requirement for registration as an NBFC is a company incorporated under Section 3 of the Companies Act, 1956 and have a minimum net owned funds of Rs. 200 lakhs.

How many MFI are in India?

India’s microfinance sector is fragmented with more than 3000 microfinance companies (MGIs), NGOs and NGO-MFIs. The top 10 microfinance companies in India are estimated to account for almost 74 per cent of the total loans outstanding.

Who regulate the NBFC MFI?

the Reserve Bank of India (RBI)
The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III-B) and the directions issued by it.