What changed
RBI added a new requirement to the existing prudential norms: every NBFC must finalise its balance sheet within 3 months from the date to which it pertains (e.g., March 31 balance sheet must be finalised by June 30). Earlier, only the submission of the auditor certificate had a timeline; now balance sheet finalisation itself has a hard deadline.
What it means for you
NBFCs now face a tighter compliance calendar: balance sheets must be closed by June 30 each year, and the statutory auditor certificate must follow within one month of finalisation (but not later than December 30). This reduces flexibility in extending balance sheet dates without prior RBI approval. Lenders and investors can expect more timely financial data from NBFCs.
What you must do
- Ensure your NBFC finalises its balance sheet by June 30 for the March 31 year-end.
- Submit the statutory auditor certificate within one month of balance sheet finalisation, and no later than December 30.
- Seek prior RBI approval if you need to extend the balance sheet date beyond June 30.
- Update internal compliance calendars to reflect these deadlines.
Who it affects
All deposit-taking NBFCs, All non-deposit-taking NBFCs, Statutory auditors of NBFCs, Compliance teams at NBFCs
What is the deadline for finalising the balance sheet?
The balance sheet as on March 31 must be finalised within 3 months, i.e., by June 30 of the same year.
When must the statutory auditor certificate be submitted?
Within one month from the date of finalisation of the balance sheet, but in any case not later than December 30 of that year.
Can an NBFC get an extension for finalising its balance sheet?
Yes, but only with prior approval from RBI. The circular states that extension of the balance sheet date requires prior RBI approval.