What changed
RBI updated the Master Circular on NBFC Returns Specifications to include all instructions up to June 30, 2009, updating the earlier Master Circular No. 119. The circular reaffirms that NBFCs (excluding residuary non-banking companies) must file quarterly returns in Form NBS-3, while residuary non-banking companies use Form NBS-3A. It also specifies that residuary non-banking companies must maintain assets equal to 10% of deposits outstanding at the close of business on the last working day of the second preceding quarter.
What it means for you
NBFCs must ensure timely and accurate quarterly return filing to avoid compliance gaps. The 10% asset maintenance requirement for residuary non-banking companies remains unchanged, impacting their liquidity planning. Banks lending to or dealing with NBFCs should verify their counterparties' compliance with these reporting norms to assess regulatory health.
What you must do
- Ensure your NBFC clients submit quarterly returns in Form NBS-3 or NBS-3A within 15 days of the month succeeding the quarter.
- Verify that returns are certified and signed by an authorized official of the company as true and correct.
- Confirm that residuary non-banking companies maintain assets at 10% of deposits from the second preceding quarter.
- Check that returns are filed with the Regional Office of Department of Supervision (Financial Companies Wing) of RBI based on the registered office location.
Who it affects
All Non-Banking Financial Companies (NBFCs) accepting public deposits, Residuary Non-Banking Companies (RNBCs), RBI Department of Non-Banking Supervision, Banks with exposure to NBFCs
What is the deadline for submitting the quarterly return?
The quarterly return must be submitted within 15 days of the month succeeding the quarter to which it relates.
Which forms are used for the quarterly return?
NBFCs (other than residuary non-banking companies) use Form NBS-3, while residuary non-banking companies use Form NBS-3A.
What is the asset maintenance requirement for residuary non-banking companies?
Residuary non-banking companies must maintain assets equal to 10% of deposits outstanding at the close of business on the last working day of the second preceding quarter.