What changed
RBI issued a master circular compiling all existing instructions on returns to be submitted by NBFCs (excluding RNBCs) as of June 30, 2013. The circular lists specific returns for deposit-taking NBFCs, systemically important non-deposit-taking NBFCs (NBFC-ND-SI), and other NBFCs, along with their periodicity and due dates. It also includes requirements for annual auditor certificates and FDI compliance certificates.
What it means for you
This master circular simplifies compliance by providing a single reference for all NBFC return requirements, reducing the risk of missing filings. Banks and lenders dealing with NBFCs can now easily verify that their counterparties are submitting the correct returns on time. The consolidated list helps in assessing NBFCs' regulatory compliance and financial health more efficiently.
What you must do
- Ensure your NBFC clients are aware of the consolidated return requirements and deadlines.
- Verify that deposit-taking NBFCs file NBS-1, NBS-2, NBS-3, NBS-4, NBS-6 (if total assets >= Rs 100 crore), and half-yearly ALM returns (if public deposits > Rs 20 crore or asset size > Rs 100 crore) as per the schedule.
- Confirm that NBFC-ND-SI clients submit NBS-7, monthly financial parameters, and ALM returns (ALM1 monthly due 10th, ALM2 and ALM3 half-yearly due 20th April/Oct) on time.
- Remind all NBFCs to submit the annual auditor certificate (as at end of March) and FDI compliance certificates half-yearly (half year ending March and September) if applicable.
- Update internal compliance checklists to reference this master circular for NBFC reporting.
Who it affects
All NBFCs (excluding RNBCs), Deposit-taking NBFCs, Systemically important non-deposit-taking NBFCs (NBFC-ND-SI), Non-deposit-taking NBFCs with assets between Rs 50 crore and Rs 100 crore, NBFCs with foreign direct investment (FDI), Statutory auditors of NBFCs
What is the purpose of this master circular?
It consolidates all existing instructions on returns to be submitted by NBFCs into one document for easy reference, effective from July 1, 2013.
Which NBFCs are required to submit the NBS-6 return?
Deposit-taking NBFCs with total assets of Rs 100 crore and above must submit the monthly NBS-6 return on exposure to capital market.
What are the ALM return requirements for NBFC-ND-SI?
NBFC-ND-SI must submit a monthly statement of short-term dynamic liquidity (ALM1) due 10th of next month, and half-yearly statements of structural liquidity (ALM2) and interest rate sensitivity (ALM3) due 20th April/Oct.