Starting a Non-Banking Financial Company (NBFC) in India is a smart move if you want to tap into the fast-growing financial services sector. But before diving in, one big question often comes up — how much capital do you really need for NBFC registration? Let’s explore the answer in simple terms, along with key insights into related licenses such as P2P Lending, PPI License, Account Aggregator, and how you can apply for them online.
What is an NBFC?
An NBFC (Non-Banking Financial Company) is a company registered under the Companies Act that provides financial services similar to banks but does not hold a banking license. NBFCs offer services such as loans, credit facilities, investments, leasing, asset financing, and more.
Unlike banks, NBFCs cannot accept demand deposits or issue cheques, but they play a huge role in promoting financial inclusion, especially in underserved areas.
Minimum Capital Requirement for NBFC Registration
To register an NBFC in India, the Reserve Bank of India (RBI) has laid down specific capital requirements, depending on the type of NBFC.
1. Basic NBFC (Loan or Investment Company)
Minimum Net Owned Fund (NOF): ₹2 Crore
This is the standard requirement for most NBFCs, including loan and investment companies.
The capital must be unencumbered, meaning it should not have any liability or debt against it.
2. NBFC – Microfinance Institution (NBFC-MFI)
Also requires ₹2 Crore NOF, though in some northeastern states, it's ₹5 Crore.
Must have at least 85% of its net assets as qualifying assets (small loans).
3. NBFC – Factors
₹5 Crore NOF
Provides factoring services like bill discounting for businesses.
4. NBFC – Infrastructure Finance Company
₹300 Crore NOF
Focuses on infrastructure project financing.
5. NBFC – Account Aggregator (NBFC-AA)
₹2 Crore NOF
It helps users securely share financial data with financial institutions.
You can now get an NBFC account aggregator license online via RBI’s official portal.
6. NBFC – Peer-to-Peer Lending (NBFC-P2P)
₹2 Crore NOF
Operates a digital platform for direct lending between lenders and borrowers.
You can easily apply for a P2P lending license online with the help of Corpbiz experts.
7. NBFC – Prepaid Payment Instruments (PPI License)
₹15 Crore NOF
These NBFCs offer wallets and payment systems (like mobile wallets).
The first requirement is to get PPI authorization from RBI. You can apply for a PPI license online through the RBI website or take help from Corpbiz.
What Does NOF (Net Owned Fund) Include?
The Net Owned Fund (NOF) is calculated using:
Paid-up equity capital
Free reserves (excluding revaluation reserves)
Balance in share premium account
Less: Accumulated losses, deferred revenue expenditure, and intangible assets
This amount should be available in the form of bank balance or FDs (fixed deposits) during the application process.
Step-by-Step Guide to Online NBFC Registration with RBI
Setting up an NBFC involves multiple steps and compliance checks. Here’s how you can go for online NBFC registration with RBI:
Step 1: Company Incorporation
Register your company as a Private Limited Company or Public Limited Company under the Companies Act, 2013.
Step 2: Meet Capital Requirements
Ensure you have the required NOF (₹2 Cr or more) deposited in a bank account.
Step 3: Prepare Documents
PAN, COI, MOA, AOA
Net worth certificate by CA
Banker’s report
KYC of directors
Business plan, etc.
Step 4: Apply Online on RBI’s COSMOS Portal
Fill out the application on RBI’s COSMOS portal.
Upload scanned documents.
Step 5: Submit a Physical Copy to RBI
Submit a hard copy of the application and documents to the regional RBI office.
Step 6: RBI Review and License Grant
RBI verifies documents and may raise queries.
If everything is fine, you get your Certificate of NBFC Registration.
Other Popular NBFC Licenses
With digital lending and fintech on the rise, many entrepreneurs are now exploring niche NBFC models:
P2P Lending License Online: Operate an online marketplace for loans.
NBFC Account Aggregator License Online: Provide digital consent-based data-sharing services.
PPI License Apply Online: Launch digital wallets or prepaid cards.
Why Choose Corpbiz?
Corpbiz has helped hundreds of businesses register their NBFCs in India. From guiding you on the capital structure to assisting with RBI compliance and documentation, our experts are ready to make your NBFC journey smooth and stress-free.
We also help with specialized licenses such as:
P2P Lending License Online
NBFC Account Aggregator License Online
PPI License Apply Online
Let Corpbiz help you build a future-ready financial business.
FAQs on NBFC Registration Capital Requirement
Q1. What is the capital required for basic NBFC registration?
Ans: A minimum Net Owned Fund (NOF) of ₹2 Crore is required.
Q2. Can I start an NBFC with ₹50 Lakhs capital?
Ans: No. As per RBI rules, you need at least ₹2 Crore capital.
Q3. Is the capital refundable if NBFC registration is not approved?
Ans: The capital remains in your company’s account. It is not refunded but can be used for other business purposes if NBFC registration is not approved.
Q4. Can I apply for an NBFC Account Aggregator license online?
Ans: Yes. The application process is fully online, and Corpbiz can guide you through it.
Q5. Do I need RBI approval for a PPI License?
Ans: Yes. RBI approval is mandatory, and you need to apply with detailed documentation.
Conclusion
The minimum capital requirement is a crucial part of starting your NBFC. Whether you're interested in online NBFC registration with RBI, a P2P lending license online, an NBFC account aggregator license online, or planning to apply for a PPI license online, having the right capital and expert guidance makes all the difference.
At Corpbiz, we ensure your NBFC registration is done with full compliance, clarity, and convenience.
