NBFC Registration | NBFC License | Capital Required | Enterslice

REGULATORY STRUCTURE FOR NBFCS: Based on their size, activity, and perceived riskiness #NBFC are Classified in to four layers:-

o NBFC Base Layer (NBFC-BL).
non-deposit taking NBFCs below the asset size of ₹1000 crore
o NBFC – Middle Layer (NBFC-ML)
The Middle Layer shall consist of: (a) All deposit taking NBFCs (NBFC-Ds), irrespective of asset size, (b) Non-deposit taking NBFCs with asset size of ₹1000 crore and above and
o NBFC – Upper Layer (NBFC-UL) and NBFC – Top Layer (NBFC-TL) – This Layer is ideally expected to be empty.

a) NBFC-P2P, NBFC-AA, NOFHC and NBFCs without public funds and customer interface will always remain in the Base Layer of the regulatory structure.
b) NBFC-D, CIC, IFC and HFC will be included in Middle Layer or the Upper Layer (and not in the Base layer), as the case may be. SPD and #IDF-NBFC will always remain in the Middle Layer.
c) The remaining NBFCs, viz., Investment and Credit Companies (NBFC-ICC), #microfinance Institution (NBFC-MFI), NBFC-Factors and Mortgage Guarantee Companies (NBFC-MGC) could lie in any of the layers of the regulatory structure depending on the parameters of the scale based regulatory framework.
d) Government owned NBFCs shall be placed in the Base Layer or Middle Layer, as the case may be. They will not be placed in the Upper Layer till further notice.
Capital Required – 10 Crores for the base layer
(ICC)
• For P2P and NBFC-AA still capital requirement is 2 CR
• For only investment company capital requirement is 2 CR
1. Eligible capital – Means only tier 1 capital
(Explain T1 Capital )
2. Principal Business Criteria (PBC)
• 50% of total assets must be Financial assets
• 50% of income must be from financing/investment

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