A Non-Banking Financial Company (hereinafter referred to as NBFC) is an entity that provides banking and other lending services but does not come under the legal definition of a bank. An NBFC is incorporated under the Companies Act, 1956 or the Companies Act, 2013. All NBFC’s are necessitated to procure a ‘Commencement of Business’ certificate from the Reserve Bank of India (hereinafter referred to as RBI) as provided under the provision of Section 45-IA of the RBI Act, 1934. Further, they cannot commence any business as a Non-Banking Financial Institution without procuring a ‘Certificate of Registration’ from the RBI. The NBFC Registration and License may be obtained in 90-120 days.
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