PREPARATION AND FILING OF RETURNS OF NBFC

OVERVIEW

Non-Banking Financial Companies (NBFCs) are required to comply with various regulatory reporting requirements prescribed by the Reserve Bank of India (RBI). Proper preparation and filing of returns are critical for NBFCs to ensure regulatory compliance, avoid penalties, and maintain financial discipline. Regular monitoring and automation can help streamline the process efficiently.

TYPES OF RETURNS REQUIRED FOR NBFCS

NBFCs must file different types of returns based on their category, asset size, and nature of operations. The key returns are:

A. ANNUAL RETURNS
  1. Statutory Auditors Certificate (SAC) - To be submitted annually confirming compliance with RBI’s regulations.
  2. Audited Financial Statements - Must be submitted along with statutory returns.
B. PERIODIC RETURNS (QUARTERLY/HALF-YEARLY/MONTHLY)
  1. NBS-1 (Quarterly) - Applicable to deposit-taking NBFCs (NBFCs-D) for reporting assets and liabilities.
  2. NBS-2 (Quarterly) - Details about prudential norms compliance.
  3. NBS-3 (Quarterly) - Report on Liquid Assets for NBFCs accepting public deposits.
  4. NBS-4 (Quarterly) - For rejected NBFCs-D, reporting of public deposit repayment status.
  5. NBS-6 ( Monthly) - Return on exposure to capital market by deposit taking NBFC with total assets of Rs 100 crore and above.
  6. Half-yearly ALM - Return by NBFC holding public deposits of more than Rs 20 crore or asset size of more than Rs 100 crore
  7. NBS-7 (Quarterly) - For Systemically Important Non-Deposit Taking NBFCs (NBFCs-ND-SI) with an asset size of Rs500 crore and above.
  8. ALM Returns (NBS-ALM 1, 2, 3) (Half-Yearly) - Asset-Liability Management returns for deposit-taking NBFCs and large NBFCs-ND-SI.
  9. Quarterly return on important financial parameters of non deposit taking NBFCs having assets of more than Rs 50 crore and above but less than Rs 100 crore
C. MONTHLY RETURNS
  1. DNBS-09 -Applicable to all NBFCs to report important financial data.
  2. Branch Information Return (BIR) -Information on the branches of the NBFC.
D. OTHER RETURNS
  1. CIC Reporting - Credit Information Companies reporting for borrower details.
  2. Fraud Monitoring Report - Any fraudulent transactions to be reported immediately.

PENALTIES FOR NON-COMPLIANCE

Failure to file returns on time or filing incorrect information may attract:

  • Monetary penalties imposed by RBI.
  • Restrictions on business operations.
  • Cancellation of NBFC registration in severe cases.
 
     
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