Non-Banking Financial
Company-Micro Finance Institution (NBFC-MFI) is a secondary banking system
aimed at extending credit to economically disadvantaged groups.
These provide
small-scale retailers, having limited resources, with an opportunity to avail
finance and thereby increase their efficiency and profitability.
According to Reserve
bank of India, NBFC-MFI is a non-deposit taking NBFC which has not less than 85%
of its assets satisfying the criteria set by the RBI.
The Micro Finance
Company Registration is similar to other NBFCs registration with
respect to forms and documents, except for few differences on account of
capital requirement and additional information.
What
is the additional information required for registration as NBFC-MFI?
In addition to the
registration process followed for NBFC in general,
following information has to be supplied specifically for the registration of
NBFC- MFI under the signature of the director and seal of the company:
1. Whether
the company has been making transactions in any other form as the business of
Micro Financial Institution on or before December 2, 2011?
2.
If
yes, the date of commencement of such business.
3.
Details
of the Self Regulatory Organization (SRO) with which the company is associated
(Name, Registered Address, etc)
4.
Are
there any other NBFC-MFIs/ pending NBFC-MFIs in the group? If yes, then
justification of the same?
5.
The
Projected business plan for 3 years indicating the following:
a.
Amount
of loan assets to be originated
b.
Amount
of loan assets to be extended for income generation
c.
Break
up of amount of assets to be originated in rural areas and semi-urban and urban
areas
d.
Activities
the company intends to support in rural, semi-urban areas, and urban areas
e.
Projected
profits
f.
Average
cost of borrowings
g.
Average
Return on Assets(ROA)
h.
Expected
capital expenditure in land and buildings and
i.
IT
resources
j.
Locations
where the company intends to operate
k.
Allocation
of resources to training and skill
l.
development
of SHGs/JLGs
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