What changed
RBI introduced a new annual reporting requirement for NBFC-ND-SI entities. They must now submit form NBS-7 every year within three months of the financial year-end, replacing earlier ad-hoc reporting. The first return is due for the year ending March 31, 2007.
What it means for you
Banks and lenders dealing with NBFC-ND-SI counterparties can now access standardized annual data on capital funds and risk asset ratios, improving credit risk assessment. NBFCs must set up systems for timely electronic filing, increasing compliance costs but enhancing regulatory transparency. Late or non-filing could invite supervisory action.
What you must do
- Ensure your NBFC-ND-SI obtains user-id and password from RBI's Information Division for web-enabled NBS-7 submission.
- Prepare and file the first NBS-7 return for the year ending March 31, 2007, by June 30, 2007.
- Submit a signed hard copy of the return to the Regional Office of the Department of Non-Banking Supervision where your company is registered.
- Set up internal processes to compile capital funds and risk asset ratio data annually within three months of each financial year-end.
Who it affects
Systemically Important Non-Banking Financial Companies (non-deposit taking) with assets of ₹100 crore and above, Regional Offices of the Department of Non-Banking Supervision, Banks and lenders with exposure to NBFC-ND-SI entities
What is the deadline for submitting the NBS-7 return?
The return must be submitted within three months from the close of the financial year, i.e., by June 30 each year. The first return is due for the year ending March 31, 2007.
How should the NBS-7 return be submitted?
The return must be filed electronically via the RBI portal after obtaining a user-id and password from the Information Division. A signed hard copy must also be submitted to the relevant Regional Office of the Department of Non-Banking Supervision.
Which NBFCs are covered under this circular?
All systemically important non-deposit taking NBFCs (NBFC-ND-SI) with asset size of ₹100 crore and above, excluding government NBFCs, are required to comply.