NBFC

XBRL Returns for NBFCs

NBFC has been imposed by RBI with the mandatory filing of returns in XBRL mode from financial 2019-20 onwards. A financial institution is categorized as an NBFC when its assets exceed 50% of the gross.

ND-NSI NBFC

Non-Banking Financial Institutions are institutions other than banks that provide bank-like assistance to the areas where the bank is unable to extend its arms. These NBFCs are further classified into different categories; one among them is the ND-NSI NBFC, which generally stands for Non-Deposit taking and Non-Systematically Important NBFC. This form of NBFC includes NBFCs whose asset size falls within INR 500 Crore. Due to lower asset size than the general, this category does not comply with complex regulations set by RBI, like not being required to maintain certain specified ratios.

Why XBRL?

XBRL or Extensible Business Reporting Language is a globally standardized format specifically developed for communication between businesses through financial Data transfer or business reporting by analysts, investors, regulators, etc. XBRL usage can help computers track data and then process, organize, and exchange the data that has been tagged as “Intelligently” under XBRL. The tech usage in the process of information transfer releases the risk of information misused, misplaced, and mistreated by organizing and defining the XBRL tags using the XBRL taxonomies.

Who has to file using XBRL?

With the issuance of a circular by RBI for the applicability of XBRL usage for filing returns by the NBFCs from 2019-20 onwards, the usage of all other online filing of returns by the ND-NSI categories of NBFCs was discontinued.

NBFCs owning an asset size lesser than Rs 500 crores are mandatorily required to choose XBRL as their only return reporting system.

NBFCs are required to register themselves on the respective XBRL platform along with listing the company’s details (of KMPs) following the company’s contact details of the KMPs as regulated by the Reserve Bank. Official mail ID, which has been used for User ID registration, is used for communicating officially between the NBFCs and the Department of Non-banking Supervision.

Benefits you get

XBRL usage allows the user to enjoy different perks, among which few are as follows:

• Improved data analysis
• East data traction
• Improvised qualitative stimuli
• Advanced insights for decision-making.

The Statutory auditor ID should be created on the XBRL portal for each NBFC for general access. In order to activate the Auditor ID, an authentication mail is generated through an automated system for verification of the submission of the DNBS-10 return.

For NIL overseas investments by NBFCs, DNBS-13 returns are required to be filed.

Return to be filed as per asset size.

The NBFC should use the following form if their asset size is below 100 crore rupees:

• DNBS 02: NBFCs holding and accepting deposits are required to file this form of return quarterly on the basis of certain financial parameters and indicators. This return must be filed within 15 days of the end of the quarter.
• DNBS 10: This form is the statutory auditor certificate, which should be filed annually within one month after finalizing the balance sheet. Moreover, this return cannot be filed after 31^st December.
• DNBS 13: These returns outline the overseas investment details and are filed after 15 days when the quarter ends. Any NBFC with some overseas investment should file the respective Returns every quarter.

The NBFC should use the following form if their asset size is more than 100 crore and less than 500 crores:

• DNBS 04A: This return is used for short-term dynamic liquidity return, filed quarterly, 15 days before the quarter ends.
• DNBS 04B: This return is a structural liquidity and interest rate sensitivity return that is filed every month but within 10 days before the month ends.

Moreover, DNBS 10, DNBS 02, and DNBS 13 returns are required to be filed by NBFCs with asset sizes between 100 crores and 500 crores

Check your box

S. No	Existing Return name in the COSMOS application	New return name in the XBRL system	New Frequency	Due Date for filing	To be submitted by NBFCs in the XBRL portal in the category of
1	NBS-1	DNBS01	Quarterly		NBFCs- Deposit Taking & NDSIs (having asset size > ₹500 crore)
2	NBS-8	DNBS02	Annual	60 days from the end of the Financial year.	Non-NDSI NBFCs having asset size < ₹500 crore
	NBS-9
3	NBS-2 & NBS-3	DNBS03	Quarterly		NBFCs- Deposit Taking & NDSIs
	NBS-7
4	ALM-Structural Liquidity Statement & ALM – Interest Rate Sensitivity	DNBS04A	Monthly	15 days from the end of the quarter	NBFCs- Deposit Taking & NDSIs
5	ALM-STDL	DNBS04B	Quarterly	10 days from the end of the month	NBFCs- Deposit Taking & NDSIs
6	NBS-4	DNBS05	Quarterly		Return for Rejected Deposit Taking NBFCs
7	NBS-1A & NBS-3A	DNBS06	Quarterly		Return for RNBCs
8	SCRC_Rev for ARC companies	DNBS07	Quarterly		Return for ARCs in the XBRL system
9	Statutory Auditor Certificate	DNBS010	Annually	One month from the date of the final balance sheet but before December 31	Return for Statutory Auditor to be filed in XBRL system through Statutory Auditor Module. The separate web link is placed below for your kind reference.
10	Return for CICs	DNBS11	Quarterly		Return for CICs – Balance Sheet Parameters Data
11	Return for CICs	DNBS12	Quarterly		Return for CICs – Prudential Parameters Data
12	Overseas Return	DNBS13	Quarterly	15 days from the end of the quarter	Quarterly returns to be filed by NBFCs in XBRL which have overseas exposure
13	No Return in the COSMOS system.	DNBS14	Quarterly		Return for P2P platforms.

Learn to access the return form.

Please click on the RBI iFile icon on the Desktop and then it prompts you to the scoping question panel. Based on a selection of the return in the scoping question panel, the requisite return will be populated/opened accordingly. The same may be filled with the relevant data generated by the instance file uploaded to the portal. Then, the return is signed digitally with a class 2 signing certificate (Verifier / Checker needs to sign the return).

Conclusion

NBFCs under a specified asset size mark fall within an entire arena of less complex compliance and better reliefs. However, it is important to understand that the defined compliances for such categories of NBFC, such as ND-NSI, are taken care of to avoid any unnecessary hurdles. One such compliance is to file the return as per the prescribed timeline. ND-NSI-NBFC has been enjoying an extensive gateway to benefits after 2019, which surely had an impact on the financial Industry.

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