Explore the RBI approved NBFC list: A Comprehensive list to Non-Banking Financial Companies in India

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.

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

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

1. 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.
2. 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.
3. 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.
4. 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

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