What changed
RBI issued a master circular compiling all existing instructions on returns to be submitted by NBFCs, effective July 1, 2011. The circular consolidates requirements for deposit-taking NBFCs, NBFCs-ND-SI, and other NBFCs, including specific return formats and due dates. It replaces earlier individual circulars with a single reference document.
What it means for you
NBFCs now have a single source for all return-filing obligations, reducing confusion from multiple circulars. Lenders must ensure timely submission of returns like NBS-1, NBS-2, ALM statements, and auditor certificates to avoid compliance gaps. The circular also clarifies reporting for NBFCs with FDI and those opening overseas branches.
What you must do
- Review the master circular and identify all applicable returns for your NBFC type (deposit-taking, ND-SI, or other).
- Update internal compliance calendars with due dates for each return, especially NBS-1 (due by 30th Sept) and ALM returns.
- Ensure statutory auditors are briefed on the annual certificate requirement regarding asset/income pattern and CoR eligibility.
- For NBFCs with FDI, arrange half-yearly certification on minimum capitalisation and FEMA compliance.
- Submit quarterly returns for overseas branch/subsidiary openings to the regional DNBS office and DSIM.
Who it affects
All NBFCs excluding RNBCs, Deposit-taking NBFCs (NBFCs-D), Systemically important non-deposit-taking NBFCs (NBFCs-ND-SI), Non-deposit-taking NBFCs with assets between Rs 50 crore and Rs 100 crore, NBFCs with foreign direct investment (FDI)
What is the purpose of this master circular?
It consolidates all instructions on returns to be submitted by NBFCs (excluding RNBCs) issued up to June 30, 2011, into one document for easy reference.
Which NBFCs need to submit the NBS-2 return?
NBS-2 is a half-yearly return on prudential norms required specifically from NBFCs that accept public deposits.
What is the due date for the annual NBS-1 return?
The NBS-1 return, detailing assets and liabilities, is due by September 30 each year, based on data as of March 31.