What is Type 1 and Type 2 NBFC?

By Ritesh|Updated : September 3rd, 2022

Type 1 NBFCs do not currently have a customer interface, do not plan to have one in the future, do not presently receive public funding, and do not plan to do so. Type 2 NBFCs—NBFC-NDs—are NBFCs that already have or plan to have a client interface, as well as those that plan to receive public funding soon.

Types of NBFC in India: Type 1 & Type 2 NBFC

Registration Process For Non-Banking Financial Companies:

  • Companies that seek to register as NBFCs must apply online and send a physical copy of their registration application and all needed supporting documentation to the Reserve Bank of India's
  • regional office.
  • You can apply online by visiting the RBI's secure website.
  • Click "CLICK" for Company Registration on the COSMOS Application login page.
  • The Excel application form would be shown in a window that could be downloaded.
  • The business can then go to the website to download the appropriate NBFC application form, fill it out, and upload it.
  • The business may remember to fill out field "C-8" of "Annex-I" with the proper name of the Regional Office.

Summary:

What is Type 1 and Type 2 NBFC?

NBFC is classified as Type 1 and Type 2. Type 1 does not currently have a customer interface, whereas Type 2 NBFCs, have or intend to have a client interface.

  • Type 1 does not intend to in the future, does not currently receive public support, and does not intend to do so.
  • Type 2 NBFCs are also known as NBFC-NDs.

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