Starting a Non-Banking Financial Company (NBFC) in India can be a smart business decision. These companies play a big role in giving loans, credit, and other financial services to individuals and small businesses. 

But before you start an NBFC, you need to meet a key requirement — the minimum capital needed for NBFC registration with RBI.

In this blog by Corpbiz, we will explain in simple words how much capital you need, why it's important, and how to apply for various NBFC licenses like RBI Account Aggregator License, P2P Lending License, and PPI License.

What is an NBFC?

An NBFC is a financial institution that provides banking-like services but does not hold a banking license. It cannot accept demand deposits like banks, but it can lend money, provide credit facilities, investment services, leasing, and more.

NBFCs are regulated by the Reserve Bank of India (RBI), and to operate legally, they must be registered under the RBI Act.

Why is Capital Requirement Important for NBFCs?

The capital requirement is a safeguard. It ensures the NBFC has enough funds to operate and meet its obligations to customers. It also protects public interest and helps maintain financial stability.

What is the Minimum Capital Requirement for NBFC Registration with the RBI?

The minimum Net Owned Fund (NOF) required to register an NBFC with the RBI is:

₹10 Crore (Ten Crore Rupees)

This requirement was increased from ₹2 crore to ₹10 crore by the RBI in October 2022 as part of the Scale-Based Regulation (SBR) framework. This applies to:

• Investment and Credit Companies (ICC)
  
  

• Loan Companies
  
  

• Asset Finance Companies
  
  

Note: Companies that were already registered before the new rule have been given time to increase their capital step by step.

What is Net Owned Fund (NOF)?

Net Owned Fund (NOF) = Paid-up equity capital + Free reserves – Accumulated losses – Deferred revenue expenditure – Intangible assets

So, to register as an NBFC, your company should have at least ₹10 crore in net owned funds — not just in bank balance, but in a clean balance sheet with audited financials.

Types of NBFC Licenses and Their Capital Requirements

Let’s look at some specific NBFC licenses and their minimum capital requirement:

1. RBI Account Aggregator License

RBI Account Aggregator License is for companies that collect and share financial data between users and financial institutions with the user’s consent. They don't handle money, just data.

• Minimum Capital Requirement: ₹2 Crore
  
  

• Regulated by: RBI
  
  

• Key Feature: Doesn’t perform lending, only collects and shares data securely.
  
  

Corpbiz Tip: A great option for startups in the fintech sector.

2. P2P Lending License (Peer-to-Peer Lending)

These NBFCs connect borrowers and lenders through an online platform.

• Minimum Capital Requirement: ₹2 Crore
  
  

• Application: You can apply for a P2P Lending License online via the RBI portal.
  
  

• Function: Acts as a digital marketplace, doesn’t lend its own money.
  
  

Corpbiz Tip: Ideal for tech companies looking to enter the lending space without risking their funds.

3. PPI License (Prepaid Payment Instruments)

This is for companies that issue wallets or cards like Paytm or PhonePe.

• Minimum Capital Requirement: ₹5 Crore
  
  

• Application: You can apply for a PPI license online with the RBI.
  
  

• Purpose: Enables prepaid transactions — loading money and spending via wallet.
  
  

Corpbiz Tip: Perfect for startups offering payment solutions.

How to Apply for NBFC Registration with RBI?

Here’s a simple step-by-step guide from Corpbiz:

Step 1: Company Formation

Incorporate a private limited company or a public limited company under the Companies Act, 2013.

Step 2: Capital Infusion

Infuse the required minimum NOF (₹10 crore for standard NBFC, ₹2 crore for P2P/AA, ₹5 crore for PPI).

Step 3: Open a Bank Account

Deposit the capital in a fixed deposit and obtain a banker’s certificate.

Step 4: Prepare Documents

Some important documents include:

• MOA and AOA
  
  

• Net Worth Certificate by CA
  
  

• Credit report of directors
  
  

• Business plan
  
  

• Board resolution
  
  

• Banker’s report
  
  

Step 5: Online Application

File the online NBFC application on the RBI COSMOS Portal.

Step 6: Submit Hard Copy

Send a physical copy of the application to the regional RBI office.

Step 7: RBI Review and License Grant

RBI checks your application, business model, KYC, capital adequacy, and if satisfied, issues the Certificate of Registration (CoR).

Common Mistakes to Avoid

• Submitting incomplete documents
  
  

• Underestimating the NOF requirement
  
  

• Not following RBI compliance
  
  

• Choosing the wrong NBFC category
  
  

Let Corpbiz experts guide you through the entire process without delays.

Why Choose Corpbiz?

Expert Guidance from professionals like Atul Shukla
End-to-End Support for NBFC registration, compliance, and licensing
Customized Solutions for startups, fintechs, and finance professionals
Transparent Pricing and No Hidden Charges

FAQs

Q1. Can I start an NBFC with ₹2 Crore?

You can start an NBFC only under specific categories like P2P Lending or Account Aggregator, which have a ₹2 crore requirement. For general NBFCs, you need ₹10 crore.

Q2. How much time does NBFC registration take?

It usually takes 3 to 6 months, depending on how quickly you prepare your documents and respond to RBI queries.

Q3. What is the capital requirement for a PPI license?

For a Prepaid Payment Instrument (PPI) license, the minimum capital required is ₹5 crore.

Q4. Can Corpbiz help in applying for multiple NBFC licenses?

Yes! Corpbiz helps with:

• NBFC Registration with RBI
  
  

• P2P Lending License Apply Online
  
  

• RBI Account Aggregator License
  
  

• PPI License Apply Online
  
  

All under one expert platform.

Conclusion

Understanding the minimum capital requirement is the first and most important step in starting an NBFC in India. Whether you’re planning to apply for a regular NBFC license, P2P lending platform, account aggregator, or PPI wallet, capital plays a crucial role.

If you're ready to start your NBFC journey, trust Corpbiz to help you at every step — from company setup to RBI approval. With our expert guidance and end-to-end support, you can build a compliant and successful NBFC.

Author: Atul Shukla – Business Compliance Expert at Corpbiz

 Atul Shukla provides personalized legal support to startups, entrepreneurs, and established firms, ensuring they meet all regulatory requirements efficiently. With a focus on clarity and reliability, I simplify complex legal processes, allowing businesses to focus on their growth.