Microfinance Company Registration
NBFC-MFI Authorization for Financial InclusionWhat is an NBFC-MFI?
A **Microfinance Institution (MFI)**, when registered as an NBFC, is a specialized financial intermediary providing small loans, savings, and other basic financial services to low-income clients who typically lack access to conventional banking services.
To operate as an NBFC-MFI, a company must satisfy strict criteria related to its **Net Owned Funds (NOF)**, loan portfolio, and loan cap rules, all regulated by the **Reserve Bank of India (RBI)**.
Key RBI Requirements (NBFC-MFI)
- **Company Type:** Mandatory Public Limited Company
- **Minimum NOF:** **₹5 Crore** (or ₹2 Crore in North East/specified regions)
- **Qualifying Assets:** At least 85% of assets must be qualifying microfinance loans
- **Loan Cap:** Loans must not exceed ₹1,25,000 per borrower
Operational & Compliance Structure
Social Mandate
Focused on financial inclusion, targeting rural, semi-urban, and low-income clients.
Strict Pricing Norms
Mandatory caps on interest rates and processing fees to protect borrowers.
Public Trust & Funding
Compliance ensures higher market credibility and access to external funding/capital.
MFI Registration Process with Cashynomy
Public Company Incorporation
Establishment of the public limited company structure under MCA.
Capital & NOF Compliance
Ensuring the required **₹5 Crore (or ₹2 Crore)** NOF is deposited as unencumbered funds.
Policy Drafting
Drafting the mandatory Fair Practices Code (FPC) and other operational policies as required by RBI.
RBI CoR Application
Online application filing via the RBI's COSMOS portal with all certified documents and NOF certificates.
Microfinance Company Advisory Package
Our specialized advisory ensures your business structure and policies meet stringent RBI requirements for MFI status:
NBFC-MFI Compliance Plan
- ✔ Public Company Incorporation Guidance
- ✔ NOF Certification Support
- ✔ Fair Practices Code (FPC) Drafting
- ✔ RBI CoR Application Filing
- ✔ Policy and Operational Vetting
- ✔ RBI Liaison and Query Management