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Before jumping to the RBI approved NBFC list, let us discuss what is NBFC and why a country like India needs NBFCs. NBFC full form in banking is Non-Banking Financial Companies. NBFCs play a crucial role in providing different financial services to individuals and businesses who are usually deprived of getting the required financial services from the banks.
Non-banking financial companies registered under the Companies Act, of 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities.
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Difference Between NBFC and Bank
NBFCs are quite different from the traditional banks in terms of structure and operation. The major difference is that NBFCs do not have banking licenses to provide all the services of a traditional bank such as deposit-taking, lending, payment services, investment products, etc.
NBFCs are operated outside the operative area of traditional banks. NBFCs are not entitled to be a part of a payment system or payment settlement system and can not offer cheque facilities as of now. According to the RBI document, NBFCs cannot do the below.
- NBFC cannot accept demand deposits;
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
- The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks.
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RBI NBFC list categories
RBI NBFC list categorized based on the services they offer
- NBFC ND: NBFC ND full form is “non-deposit taking Non-Banking Financial Company”. These non-banking financial companies do not receive any deposits from the customer. However, they can offer lending services to its clients. These NBFCs can also engage in investment in securities, asset financing, and providing financial guarantees to their customers.
- NBFC NDSI full form is a non-deposit taking Systemically Important Non-Banking Financial Company. This is similar to the NBFC ND. However, non-deposit-taking NBFCs with an asset size of Rs. 500 Cr and more as per their audited balance sheet of the last financial year are considered systemically important NBFCs (NBFC NDSI). These NBFCs have to go through more stringent requirements than an NBFC-ND.
- NBFC D: NBFC D full form is a deposit-taking NBFC. The NBFCs who are authorized to accept deposits from the public are under this category based on certain conditions and regulations imposed by the RBI.
Each category of NBFCs is further classified based on the banking activities. The broad classification is Asset Finance Company (AFC), Investment Company (IC), Loan Company (LC), Infrastructure Finance Company (IFC), Systemically Important Core Investment Company (CIC-ND-SI), Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC), Micro Finance Institution (NBFC-MFI), NBFC-Factors, Mortgage Guarantee Companies (MGC), NBFC- Non-Operative Financial Holding Company (NOFHC).
Please refer to the complete list of RBI registered NBFC
RBI approved NBFC list
| NBFC Name | Category | Classification | Corporate Identification Number |
|---|---|---|---|
| Bajaj Finance Ltd. | NBFC-D | ICC | L65910MH1987PLC042961 |
| Shriram Finance Limited [Formerly: Shriram Transport Finance Company Limited] | NBFC-D | ICC | L65191TN1979PLC007874 |
| Tata Sons Private Limited (Formerly Tata Sons Limited) CIC | NBFC-ND | CIC | U99999MH1917PTC000478 |
| Cholamandalam Investment and Finance Company Limited* | NBFC-NDSI | ICC | L65993TN1978PLC007576 |
| L&T Finance Limited | NBFC-NDSI | ICC | U65910WB1993FLC060810 |
| Mahindra & Mahindra Financial Services Ltd | NBFC-D | ICC | L65921MH1991PLC059642 |
| Aditya Birla Finance Limited | NBFC-NDSI | ICC | U65990GJ1991PLC064603 |
| Tata Capital Financial Services Limited* | NBFC-NDSI | ICC | U67100MH2010PLC210201 |
| HDB Financial Services Limited | NBFC-NDSI | ICC | U65993GJ2007PLC051028 |
| Muthoot Finance Limited | NBFC-NDSI | ICC | L65910KL1997PLC011300 |
| Indian Railway Finance Corporation Ltd | NBFC-NDSI | IFC | L65910DL1986GOI026363 |
| REC Limited | NBFC-NDSI | IFC | L40101DL1969GOI005095 |
| Power Finance Corporation Ltd. | NBFC-NDSI | IFC | L65910DL1986GOI024862 |
| Reliance Industries Holding Private Limited | NBFC-ND | CIC | U51103MH2007PTC168016 |
| India Infrastructure Finance Company Limited | NBFC-NDSI | IFC | U67190DL2006GOI144520 |
| SREI Equipment Finance Limited(Formerly SREI Equipment Finance Private Limited) | NBFC-NDSI | ICC | U70101WB2006PLC109898 |
| Gujarat State Financial Services Ltd. | NBFC-NDSI | ICC | U65910GJ1992SGC018602 |
| Tamilnadu Power Finance and Infrastructure Development Corporation Limited | NBFC-D | ICC | U65191TN1991SGC021030 |
| Indian Renewable Energy Development Agency Limited | NBFC-NDSI | ICC | U65100DL1987GOI027265 |
| SBI Cards & Payment Services Ltd. | NBFC-NDSI | ICC | L65999DL1998PLC093849 |
| Hero Fincorp Limited | NBFC-NDSI | ICC | U74899DL1991PLC046774 |
| Sundaram Finance Limited | NBFC-D | ICC | L65191TN1954PLC002429 |
| Vama Sundari Investments (Delhi) Private Limited. | NBFC-ND | CIC | U65923HR2008PTC046947 |
| Micro Units Development & Refinance Agency Limited | NBFC-NDSI | ICC | U65100MH2015PLC274695 |
| SMFG India Credit Company Limited (Formerly known as Fullerton India Credit Company Limited) | NBFC-NDSI | ICC | U65191TN1994PLC079235 |
| Kotak Mahindra Prime Ltd. | NBFC-NDSI | ICC | U67200MH1996PLC097730 |
| ICICI Securities Primary Dealership Ltd. | NBFC-NDSI | PD | U72900MH1993PLC131900 |
| Piramal Enterprises Limited | NBFC-NDSI | ICC | L24110MH1947PLC005719 |
| Infrastructure Leasing and Financial Services Limited (CIC) | NBFC-ND | CIC | L65990MH1987PLC044571 |
| Manappuram Finance Limited | NBFC-NDSI | ICC | L65910KL1992PLC006623 |
| IGH Holdings Pvt. Ltd. | NBFC-NDSI | ICC | U64200MH2000PTC129356 |
| IL & FS Financial Services Ltd. ( Formerly IL&FS Finvest Ltd.) | NBFC-NDSI | ICC | U65990MH1995PLC093241 |
| Hinduja Leyland Finance Limited | NBFC-NDSI | ICC | U65993MH2008PLC384221 |
| GMR Airports Limited | NBFC-ND | CIC | U65999HR1992PLC101718 |
| IIFL Finance Limited | NBFC-NDSI | ICC | L67100MH1995PLC093797 |
| Bharti Telecom Limited | NBFC-ND | CIC | U32039HR1985PLC032091 |
| Axis Finance Ltd. | NBFC-NDSI | ICC | U65921MH1995PLC212675 |
| Muthoot Fincorp Limited (Formerly known as Muthoot Debt Management Services Ltd) | NBFC-NDSI | ICC | U65929KL1997PLC011518 |
| TVS Credit Services Ltd | NBFC-NDSI | ICC | U65920TN2008PLC069758 |
| Creditaccess Grameen Limited | NBFC-NDSI | MFI | L51216KA1991PLC053425 |
| PNB Gilts Ltd. | NBFC-NDSI | PD | L74899DL1996PLC077120 |
| Reliance Capital Ltd. ( Converted Into CIC Wef 31-08-2018) | NBFC-ND | CIC | L65910MH1986PLC165645 |
| Tamilnadu Transport Development Finance Corporation Limited | NBFC-D | ICC | U65191TN1975SGC006887 |
| India Infradebt Limited | NBFC-NDSI | IDF | U65923MH2012PLC237365 |
| NIIF Infrastructure Finance Limited (Formerly known as IDFC Infrastructure Finance Limited) | NBFC-NDSI | IDF | U67190MH2014PLC253944 |
| Poonawalla Fincorp Ltd | NBFC-NDSI | ICC | L51504PN1978PLC209007 |
| Goldman Sachs (India) Capital Markets Pvt Ltd | NBFC-NDSI | PD | U67190MH2009FTC198210 |
| SBI DFHI Ltd. (Formerly Dicount & Finance House of India) | NBFC-NDSI | PD | U65910MH1988PLC046447 |
| HDFC Credila Financial Services Limited | NBFC-NDSI | ICC | U67190MH2006PLC159411 |
| Bajaj Holdings And Investment Limited | NBFC-NDSI | ICC | L65100PN1945PLC004656 |
Complete NBFC Company List
There are approximately 9400 NBFC companies registered with RBI. I put a list of 50 RBI registered NBFC for your reference. For complete NBFC company list please visit this link of Google drive.
What is the importance of RBI Approved NBFC
- Regulatory Compliance: compliance is important for any financial institution to operate in a country. That brings confidence in the financial system and among the citizens of the country. RBI Approved NBFC are required to comply with the regulatory framework set up by the Reserve Bank of India and submit periodic reports to the RBI.
- Risk Management: RBI continuously monitors the NBFC companies. Any risk including credit risk, liquidity risk, and operational risk can be easily avoided in such cases where RBI has approved NBFCs. RBI Approved NBFC are expected to have robust risk management systems in place to identify, assess, and mitigate the risks effectively.
- Customer Protection: RBI Approved NBFC are obligated to safeguard the interests of their customers including providing clear information about their products and services, addressing customer grievances promptly, and adhering to ethical business practices.
- Financial Inclusion of Mass: NBFCs play a crucial role in promoting financial services to underserved and unbanked populations in the country. The government promotes RBI Approved NBFCs to reach out to marginalized communities to fulfill the objectives of financial inclusion.
Final words on RBI approved NBFC
RBI Approved NBFC play a significant role in India’s financial system. The reach of these NBFCs is towards the weaker section of the society which traditional banks may not be able to reach. Hence, these NBFCs are contributing significantly to the overall development of the economy.
To avoid any fraudulent activity from unauthorized financial institutions such as chit funds, local money lenders, etc. it is important to understand if the NBFC is RBI approved NBFC or not. You can get the registration number from the concerned NBFC and search the same from the RBI Approved NBFC list in the above table. Each NBFC needs to adhere to the regulatory guidelines of the regulatory authority RBI. It is also important for every customer to be aware of fraud in financial institutions by checking for RBI approved NBFCs.
Frequently Asked Questions on RBI Registered NBFC
Who controls NBFC?
As per the RBI Act 1934, the Reserve Bank of India (RBI) controls and regulates the Non-Banking Financial Companies in India.
Is NBFC a private company?
Yes, NBFCs are private companies that operate in the financial system of the country. However, each NBFC has to fulfill certain criteria to get an NBFC license. The NBFC company can later be listed as a public company.
Is Muthoot Finance a NBFC?
Yes, Muthoot Finance is an RBI approved NBFC. The company is promoted by the Muthoot Pappachan Group. The company’s equity shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
Is Paytm an NBFC?
Paytm is a fintech company. However, its subsidiary Paytm Payments Bank Limited (PPBL) is a NBFC. Paytm resumed its lending activities in partnership with existing allies—SMFG India Credit and Shriram Finance. The company is also in talks with Muthoot Finance for both personal and merchant loans.
NBFC full form in Banking
NBFC full form in banking is Non banking financial companies. These companies regulated by RBI and hence, NBFCs are registered with RBI.
NBFC ND full form
The NBFC ND full form is Non-banking financial companies non-deposit. These are basically non-deposit non-banking financial companies.
NBFC D full form
The NBFC D full form is Deposit taking Non-banking financial companies. These companies accepts deposit from public.
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