Starting a Non-Banking Financial Company (NBFC) in India is a great business idea if you want to serve sectors that are underserved by banks. NBFCs play an important role in boosting financial inclusion in India by offering loans, advances, leasing, investments, and even digital payment services. But starting an NBFC is not a walk in the park. You need to comply with many regulations laid out by the Reserve Bank of India (RBI).
In this blog, we will explain everything you need to know about starting an NBFC, including the NBFC registration cost and process with the RBI, and other related licenses like RBI Account Aggregator License, P2P Lending License, and PPI License.
What is an NBFC?
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013, that engages in financial services like lending, asset financing, investment in securities, or providing digital wallets. NBFCs do not hold a banking license but are still regulated by the RBI.
NBFCs are broadly classified into:
- Asset Finance Companies (AFC)
- Investment Companies (IC)
- Loan Companies (LC)
- Infrastructure Finance Companies (IFC)
- Systemically Important Core Investment Companies (CIC-ND-SI)
- NBFC-P2P (Peer-to-Peer Lending Platforms)
- NBFC-AA (Account Aggregators)
- NBFC-PPI (Prepaid Payment Instrument Issuers)
NBFC Registration Cost and Process with RBI
Step-by-Step NBFC Registration Process:
- Incorporate a Company:
First, you must register a company under the Companies Act, 2013, either as a Private Limited Company or Public Limited Company. - Maintain Net Owned Funds:
You must have a minimum of ₹2 crores as Net Owned Funds (NOF). This should be clean and audited by a Chartered Accountant. - Prepare the Documents:
Documents required include PAN, CIN, MOA, AOA, audited financial statements, board resolution, business plan, and KYC of directors. - Apply Online on RBI COSMOS Portal:
Submit your application through the RBI COSMOS Portal with all required documents. - Submit Hard Copy to RBI:
After online submission, send a physical copy to the regional RBI office. - RBI Scrutiny and Approval:
RBI examines your application thoroughly. Once satisfied, the RBI will grant the NBFC license.
NBFC Registration Cost:
| Expense Category | Estimated Cost (INR) |
| Company Incorporation | ₹15,000 – ₹25,000 |
| Net Owned Fund (Minimum Requirement) | ₹2,00,00,000 |
| Legal, Consultant & Filing Fees | ₹75,000 – ₹1,50,000 |
| RBI Application & Compliance Costs | ₹20,000 – ₹50,000 |
Note: The cost may vary depending on the complexity and scope of your business.
Want to Offer Fintech Services? Explore Other RBI Licenses
1. RBI Account Aggregator License Online
Account Aggregators (NBFC-AA) enable users to access and share financial data securely. This license allows you to collect and distribute financial information from various banks and financial institutions with user consent.
How to Apply:
- Register as a company.
- Apply through the RBI portal with a detailed tech infrastructure and data privacy policy.
- Submit system audit reports and secure data architecture plans.
- Approval takes 3 to 6 months.
2. P2P Lending License Apply Online
P2P platforms connect borrowers and lenders without traditional intermediaries like banks.
Process:
- Incorporate a company with a minimum capital of ₹2 crores.
- Apply through the RBI with KYC-compliant documents, tech architecture, grievance redressal setup, and credit risk evaluation methods.
- RBI will assess your business model and platform safety before issuing the license.
3. PPI License Apply Online
If you want to issue digital wallets or prepaid cards, you need a PPI (Prepaid Payment Instrument) license from the RBI.
Application Process:
- Form a company with a clear business model for wallet operations.
- Ensure capital adequacy norms (minimum paid-up capital of ₹5 crores).
- Apply online with RBI along with system audits and security compliance.
Why Choose Corpbiz for NBFC Licensing?
At Corpbiz, we make the complex NBFC registration process simple for you. Our experienced consultants help you with:
- End-to-end documentation
- RBI portal filings
- Drafting of business plans and policy documents
- Liaison with RBI authorities
- Post-registration compliance support
We also help you apply for Account Aggregator, PPI, and P2P licenses online through a hassle-free and transparent process.
✅ 100% RBI Compliant
✅ Expert Financial & Legal Guidance
✅ Timely Documentation & Approval
FAQs on Starting an NBFC in India
Q1. What is the minimum capital required for NBFC registration?
Ans. You need at least ₹2 crores as Net Owned Fund (NOF), which must be free from liabilities.
Q2. Can a foreign company register an NBFC in India?
Ans. Yes, but it must follow FDI guidelines and meet RBI’s fit and proper criteria for management.
Q3. What is the timeline for NBFC registration?
Ans. Typically, it takes 3 to 6 months depending on RBI scrutiny and documentation quality.
Q4. What services can an NBFC offer?
Ans. Loans, advances, investments, leasing, P2P lending, account aggregation, and prepaid payment solutions.
Q5. Do NBFCs have to follow RBI compliance?
Ans. Yes, RBI mandates regular returns filing, KYC norms, audit submissions, and risk management standards.
Final Thoughts
Starting an NBFC in India is a high-potential opportunity if you want to tap into the growing demand for credit and digital finance. However, the process involves strict RBI regulations and detailed documentation. From NBFC registration cost and process with RBI to applying for Account Aggregator, P2P Lending, or PPI licenses online, every step requires expertise.
Corpbiz is here to guide you at every stage—from company setup to RBI approval. So, if you’re planning to start an NBFC in India, let us take care of the legal hurdles while you focus on growing your business.
Author: Atul Shukla
Senior Consultant at Corpbiz | Expert in RBI Licensing & Financial Compliance
Corpbiz – Empowering Entrepreneurs with Legal Clarity
Source: Planning to Start an NBFC in India? Here’s What You Need to Know
