NBFC Compliance Support

Once an NBFC is registered and operating, the compliance work doesn't stop there, it shifts into an ongoing cycle of regulatory returns, prudential disclosures, and statutory filings that have to be tracked and submitted accurately on a recurring basis. The specific obligations depend heavily on which regulatory layer the NBFC falls into under the RBI's scale based regulation framework. Livida supports registered NBFCs with this ongoing compliance as part of our regulatory support services.

Key Takeaways

• A registered NBFC carries an ongoing cycle of RBI returns, prudential disclosures and statutory filings.
• Obligations depend on the regulatory layer under the RBI's scale based regulation framework.
• RBI returns that rely on financial figures should stay consistent with the audited financial statements.
• Livida's scope is regulatory filing and compliance, not investment advisory or fund management.

NBFC compliance support and Scale Based Regulation

The RBI classifies NBFCs into regulatory layers, base, middle, upper, and occasionally top, based primarily on their size and systemic significance, with each higher layer carrying progressively more extensive compliance and reporting requirements. An NBFC's obligations under this framework aren't static either; growth in asset size or activity can shift an NBFC into a higher layer over time, bringing additional requirements along with it. Keeping track of which layer applies, and staying ahead of any threshold that would trigger a shift, is a foundational part of ongoing NBFC compliance.

What Ongoing Compliance Involves

Registered NBFCs are required to file periodic regulatory returns with the RBI covering areas like asset and liability structure and capital adequacy, alongside prudential norms specific to NBFC operations. These sit on top of the standard statutory compliance every registered company carries, annual filings with the Registrar of Companies, tax filings, and audited financial statements. Because several RBI returns rely on figures consistent with the company's audited financials, these different compliance streams need to be coordinated rather than handled in isolation from one another.

Where Coordination With the Auditor Matters

Regulatory returns that draw on financial figures need to align with what the NBFC's statutory auditor ultimately certifies in the audited financial statements. A mismatch between what's reported to the RBI during the year and the final audited numbers can raise questions during supervisory review. Livida coordinates its compliance filing work with the NBFC's statutory auditor to keep these figures consistent throughout the year rather than reconciling them only at year-end.

Livida's Process

We start by confirming which regulatory layer the NBFC falls under and the specific set of returns and filings that apply, then maintain a tracked compliance calendar covering RBI regulatory returns, Companies Act filings, and other applicable statutory obligations. We coordinate with the NBFC's statutory auditor where filings depend on audited figures, and flag in advance any growth or activity change that could shift the company into a different regulatory layer. This support is scoped to regulatory filing and compliance, not investment advisory or fund management, which fall outside what we provide.

Ongoing NBFC compliance support generally covers five tasks:

• Confirming the applicable regulatory layer, base, middle, upper, or top, under scale based regulation.
• Maintaining a tracked calendar of RBI regulatory returns and their due dates.
• Coordinating figures with the statutory auditor ahead of year-end, not only at close.
• Flagging any growth or activity change that could shift the NBFC into a higher regulatory layer.
• Managing standard Companies Act filings alongside the NBFC-specific returns.

Coordinating regulatory filings with audited figures is consistent with the kind of financial reporting discipline that bodies such as the Institute of Chartered Accountants of India set out for statutory audit work. NBFCs still working through their initial registration should also review our NBFC Registration Assistance service, and companies wanting a broader review of their control environment can look at our Statutory Audit Readiness Review service.

Why Ongoing Tracking Matters More Than a One-Time Registration

NBFC compliance is not a single milestone completed at registration, it's a recurring obligation that has to be tracked accurately for as long as the company operates. Falling behind on returns, or missing a shift into a higher regulatory layer, can draw supervisory attention that's more disruptive to resolve than staying current would have been. If your NBFC needs its ongoing RBI compliance managed, Livida's team can support this alongside your existing statutory filings.

NBFC Compliance Support at a Glance

In the filings we handle, the most common delay is a return that waits on figures not yet agreed with the statutory auditor. Our team tries to align these during the year. NBFCs also carry general tax and statutory obligations, so we look at annual ROC compliance, TDS return filing and GST registration status alongside the RBI calendar.

Conclusion

NBFC compliance support is about keeping a recurring calendar accurate: knowing the applicable layer, filing returns on time and keeping them consistent with audited numbers. Treating it as a continuing process, not a registration milestone, avoids supervisory friction. This page is general information, not professional advice, and RBI requirements change, so confirm current directions on the RBI website.

References

• RBI circular: Scale Based Regulation, A Revised Regulatory Framework for NBFCs
• Ministry of Corporate Affairs: MCA portal for company filings
• RBI FAQs: All you wanted to know about NBFCs

Talk to Livida

To discuss your filing calendar, use our contact page, email info@livida.in or call +91 94860 33194.