Now process of NBFC registration becomes mush easier

KOLKATA: Plan to set up a non banking finance company? The process of making an application has become a lot easier.

Reserve Bank of India has decided to put the system on fast track for non-deposit taking companies and reduce the number of documents required by four-fifth to improve efficiency.

The regulator has also allowed non-deposit taking NBFCs to apply separately so that the processing of them can be fast-tracked.

"As these companies will not have access to public fund and will not have customer interface, they will be subjected to less intensive scrutiny or due diligence," RBI said in a note. These companies will be prohibited from accessing public funds and having customer interface.

If they plan to raise public funds or intend to have customer interface in the future, they will be required to take a fresh approval.