What is NBFC License ?

An NBFC License in India is a mandatory regulatory approval granted by the Reserve Bank of India (RBI) to companies intending to operate as Non-Banking Financial Companies (NBFCs). NBFCs are financial institutions that provide services such as loans, credit, leasing, investment, and insurance without holding a banking license. Unlike traditional banks, NBFCs cannot accept demand deposits like savings or current accounts. To obtain an NBFC license, an applicant must meet specific criteria, including a minimum net-owned fund requirement of ₹2 crore, a detailed business plan, and compliance with RBI guidelines. NBFCs play a crucial role in financial inclusion by catering to underserved segments, such as small businesses, rural populations, and individuals without access to traditional banking. NBFCs are categorized into deposit-taking (NBFC-D) and non-deposit-taking (NBFC-ND) entities, further classified based on activities like microfinance, infrastructure finance, or asset finance. The license ensures regulatory compliance and enhances public trust. for more details :- https://www.compliancecalendar.in/nbfc-company-registration