In a strategic move to enhance operational flexibility, the Reserve Bank of India (RBI) introduced the “Harmonization of Non-Banking Financial Companies (NBFCs) Categories” on February 22, 2019. This initiative merged asset finance companies, loan companies, and investment companies into a single category: the NBFC Investment and Credit Company (NBFC-ICC). This change aligns with the RBI’s goal of implementing “activity-based regulation” rather than regulating entities separately.
An NBFC-ICC is a financial institution that blends credit and investment activities, providing loans, advances, and investing in securities helping bridge the gap between traditional banking and the evolving financial market needs.
With this new framework, NBFCs can manage their asset allocation more freely, offering greater flexibility in their operations.
Benefits of the NBFC-ICC Framework:
Crafting precise and compliant applications.
Formulating robust business plans to meet RBI standards.
Managing communications and follow-ups with the RBI to expedite approval.
We have taken service and advice from NBFC Advisory for Virtual CFO, They are taking care of our books from more than 6 months. Personally I believe that the team is professional and capable and we were able to reduce our cost quite significantly after availing their nbfc services.
The applicant must be a company registered under the Companies Act with a minimum net owned fund as specified by the RBI.
