NBFC

How to Get NBFC License Approval Faster? 

NBFCs or Non-Banking Financial Companies, are an essential part of India’s financial sector today. These institutions are keeping the economy running by providing loans, investments, and microfinance services. The NBFC sector has grown rapidly, especially after the emergence of fintech companies. 

However, obtaining an NBFC license takes a considerable amount of time due to the stringent rules and documentation requirements of the RBI, or Reserve Bank of India. Many founders do not know the correct process, so it takes a prolonged application process. 

In this guide, we will discuss how you can reduce the time for NBFC license approval. Here, we will discuss how you can reduce the time for your NBFC license approval. There will be a clear explanation of each step, starting from pre-application preparation to getting RBI approval, and some effective RBI compliance hacks. This will help new entrepreneurs complete their NBFC Registration quickly. 

Understanding The NBFC Registration Timeline 

A company must register under the Companies Act, 2013, to get an NBFC license. The next step is to apply online to the RBI and submit various documents. This entire process usually takes 4-6 months, but if there are incorrect documents or incomplete information, the time increases further. 

RBI mainly checks three aspects-  

• Whether there is a minimum Net Owned Fund (NOF) of ₹10 crore. 

• Whether the company’s KYC and AML (Anti-Money Laundering) system is strong or not. 

• Whether the governance standards of the board and management team are in compliance with the RBI guidelines. 

Many companies face delays in this verification phase, as RBI often asks for additional information or explanations. If you have all the necessary documents and compliance ready from the beginning, then this NBFC registration timeline can be largely reduced. Responding quickly and providing clear information is the first step to expediting RBI approval. 

Pre-Application Essentials Every Founder Should Prepare  

It is very important to complete some preliminary preparations before getting an NBFC license. 

Net Owned Fund (NOF): As per RBI rules, there must be a minimum capital of ₹10 crore. This amount should be clearly reflected in the company’s bank account. 

Company Incorporation: The company should be registered under the Companies Act, 2013, and the NBFC activities should be clearly mentioned in the Memorandum of Association (MoA) and Articles of Association (AoA). 

Qualification of Directors: At least one director should be experienced in the financial sector, and all directors should meet the Fit and Proper Criteria of RBI. 

Detailed Business Plan: It should include financial forecasts, risk management policies, and credit distribution strategies for at least three years. 

IT and Cybersecurity Policy: Data protection and KYC software systems are essential, especially for fintech-linked NBFCs. 

If all these preparations are done in advance, your NBFC registration timeline will be reduced by a few weeks, and the application will progress smoothly through the RBI verification stage. 

Step-by-step NBFC Registration Process 

It is important to follow an organized process to get an NBFC license. The complete process is described below-  

1. Incorporate the company: 

First, register your company as a private or public limited company under the Companies Act, 2013. This step is the basic requirement for applying for a license with an RBI. 

2. Prepare the required documents: 

The NBFC activities should be clearly mentioned in the MoA and AoA. Add the NOF certificate, a detailed business plan, a board resolution, and details of directors and shareholders. 

3. Apply online on the COSMOS portal: 

The application should be submitted on the official COSMOS portal of RBI. Once the application is completed, an application reference number is available. It is used for all future communication. 

4. Respond to RBI’s questions or suggestions: 

The RBI may ask for additional information during the verification process. Responding quickly and clearly saves a lot of time. 

5. Obtaining License (CoR): 

After verifying all documents and information, a Certificate of Registration (CoR) is issued by the RBI. 

Accurate information, timely response, and transparent documentation are the keys to a fast RBI approval NBFC process. 

RBI Compliance Hacks to Fast-Track Approval 

Although the NBFC registration process is lengthy, it is possible to get approval quickly if you take some practical steps. Here are some effective RBI compliance hacks- 

• Create a Compliance-First Business Model: Include KYC, AML, and risk management policies in the business plan from the beginning. This shows the RBI that the company is ready to comply with the rules. 

• Maintain Transparent Shareholding: A complex or indirect ownership structure raises suspicions about the RBI. Maintain a clear and verifiable shareholder structure. 

• Get NOF Capital Audited: The Net Owned Fund (NOF) must be clearly audited and reflected in the bank statement. 

• Do a Pre-Submission Audit: Get all the documents checked by an experienced NBFC compliance expert before sending the application. This will catch any errors quickly. 

• Verify Directors: Make sure all the directors meet the RBI’s Fit and Proper criteria in advance. 

• Demonstrate Digital Readiness: The presence of KYC automation, data security, and cybersecurity measures has a positive impact on the RBI. 

• Take professional advice: Working with experienced consultants like Enterslice makes the application process faster and more accurate. These NBFC registration hacks can reduce your license approval time by at least a few months. 

Common Mistakes That Delay NBFC Registration 

Many NBFC applicants face unnecessary delays in license approval due to some common mistakes. Below are the mistakes- 

• Incomplete or inconsistent financial records: If there are discrepancies in audit reports, bank statements, or NOF documents, RBI re-verifies them, which takes time. 

• Weak or unclear business plan: If there is no clarity in business objectives, risk management, or credit policy, the application may fail. 

• Delayed communication with RBI: If emails seeking questions or information are late, the entire process will be stalled. 

• Late capital disbursement or document errors: Non-submission of NOF or incorrect information will delay RBI approval. 

Every small mistake can extend the NBFC license approval time by weeks to months. Therefore, proper preparation and accuracy from the beginning are very important. 

How Do Enterslice Experts Speed ​​Up RBI Approval for NBFC License?  

Even a small mistake in the NBFC licensing process can lead to major delays. Enterslice’s experienced team of experts stands by entrepreneurs. We conduct complete NBFC due diligence and scrutinize every document, financial statement, and policy document. 

Pre-audit checks identify potential errors before the application is submitted so that there are no discrepancies during RBI verification. The registration time is reduced from 6–8 months to around 3–4 months with Enterslice’s streamlined process. 

Enterslice ensures quick application, with direct communication with RBI, timely updates, and complete documentation. So, entrepreneurs can focus on starting and running their business, while our team efficiently handles compliance responsibilities. 

Digital Transformation of RBI Licensing 

RBI is moving towards digitizing and automating its licensing process. AI-assisted scrutiny and online verification will make the NBFC application process faster and more transparent in the coming days. 

Entrepreneurs who start using compliance tech and automated KYC systems from the very beginning will stand a chance of getting approvals faster. This change will take the NBFC registration timeline to a new level, where compliance is not just a requirement but a cornerstone of business success. 

Conclusion 

Proper planning, thorough documentation, and expert support are essential to getting an NBFC license. Enterslice’s experienced team will guide you through every step from document preparation to final approval by RBI. 

Proactive compliance and professional advice can cut your approval time in half, which speeds up the pace of business start-up. 

Don’t let your business growth get stuck in the complexities of regulations. Join Enterslice to simplify RBI approval and get your NBFC license faster. 

Helpful Questions About NBFC License Approval