NBFC Consultant in Chennai: CA Murli Chandak’s Guide to RBI Registration for Tamil Nadu’s Vehicle, Equipment and Supply-Chain Financiers

In short: In Chennai, the NBFC conversation is rarely a promoter waking up one morning wanting to run a lending company for its own sake. More often it starts because a vehicle or equipment dealer group wants to bring its own financing in-house instead of routing every customer to a bank, or because an auto-component or textile supplier wants to extend structured credit to its own dealer and supplier network, or because a fintech team in the OMR corridor has built a lending product and needs a regulated balance sheet to lend from. Whatever the starting point, the company cannot commence the business of a non-banking financial institution without a Certificate of Registration from the Reserve Bank of India and the prescribed Net Owned Fund. A new NBFC-Investment and Credit Company needs a minimum Net Owned Fund of ₹10 crore, the application is filed online through RBI’s PRAVAAH portal, and the physical submission goes to the RBI’s Chennai Regional Office, whose jurisdiction covers the State of Tamil Nadu and the Union Territory of Puducherry. This guide sets out the legal foundation, the categories and capital thresholds, a 2026 exemption that has changed the calculus for some group companies, the registration route, the documentation, post-registration compliance, and how I work with Chennai and Tamil Nadu promoters through each stage.

By CA Murli Chandak, FCA, Fellow Chartered Accountant and IBBI-Registered Valuer (Securities or Financial Assets), registration IBBI/RV/07/2021/14408, with 8+ years in valuation, audit and advisory practice, based in Ahmedabad and working with promoter groups across India, including Chennai and Tamil Nadu. Regulatory positions are stated as at September 2026.

Contents

1. 1. Why NBFC Questions in Chennai Usually Start on the Factory Floor or the Dealer Forecourt
2. 2. What an NBFC Is, and the Test That Decides It
3. 3. Legal Foundation: Section 45-IA and the 2026 Exemption
4. 4. NBFC Categories and Minimum Net Owned Fund
5. 5. Eligibility Criteria the RBI Examines
6. 6. The Registration Route for a Chennai or Tamil Nadu Company
7. 7. Documents and Board-Approved Policies
8. 8. Compliance Once the Certificate of Registration Is Issued
9. 9. Customer-Facing Obligations, Including Vehicle Repossession
10. 10. Public Deposits: What a Registration Does Not Permit
11. 11. Chennai and Tamil Nadu-Specific Considerations
12. 12. Choosing an NBFC Consultant in Chennai
13. 13. Understanding the Cost of an NBFC Engagement
14. 14. How I Support Chennai and Tamil Nadu Promoters
15. 15. Frequently Asked Questions
16. 16. Conclusion and Contact

1. Why NBFC Questions in Chennai Usually Start on the Factory Floor or the Dealer Forecourt

Tamil Nadu is one of India’s most industrialised states, anchored by a large base of passenger and commercial vehicle manufacturers, two-wheeler makers and a dense auto-component supply chain radiating out from Chennai, alongside long-established textile, leather and engineering clusters further inland and a fast-growing IT and Global Capability Centre corridor along OMR and the surrounding suburbs. That mix produces a distinctive pattern of NBFC enquiries, different in emphasis from what a Mumbai or Delhi promoter typically brings.

Four situations account for most of the NBFC conversations I have with Chennai and Tamil Nadu promoters:

1. The dealer or manufacturer financier: a vehicle, tractor or equipment dealer group, or a component manufacturer, that wants to finance its own customers or its dealer network directly rather than depending entirely on bank and existing NBFC tie-ups.
2. The supply-chain financier: a larger manufacturer or exporter, common in the auto-ancillary, textile and leather trades, that wants to formalise receivables or purchase-order financing for its supplier and dealer ecosystem through an NBFC-Factor or NBFC-ICC structure.
3. The fintech lender: a technology team, often based along the OMR corridor, that has built underwriting, collections or a digital lending stack and needs either its own NBFC or a lending partnership with a regulated entity.
4. The group investment company: a holding or investment company within a Tamil Nadu family group whose balance sheet has drifted into the RBI’s principal business test through inter-corporate loans, and now needs to decide whether it must register, can rely on a 2026 exemption, or should be restructured.

Each of these calls for a different starting analysis, which is why this guide works through the legal position before it works through the registration mechanics.

2. What an NBFC Is, and the Test That Decides It

2.1 The Legal Position

A non-banking financial company is a company whose business includes loans and advances, acquisition of shares, stocks, bonds, debentures or other marketable securities, leasing, hire-purchase, insurance business, or chit business, but excludes any institution whose principal business is agriculture, industrial activity, purchase or sale of goods (other than securities) or the provision of services, or the sale, purchase or construction of immovable property. Under Section 45-IA of the Reserve Bank of India Act, 1934, a company falling within this definition cannot commence or carry on the business of a non-banking financial institution without a Certificate of Registration from the RBI and the prescribed minimum Net Owned Fund, unless a specific exemption applies. Carrying on the business in contravention of Section 45-IA is an offence; Section 58B(4A) of the Act provides for imprisonment of one to five years and a fine of ₹1 lakh to ₹5 lakh.

2.2 The Principal Business Test

The RBI treats financial activity as a company’s principal business when, on its last audited balance sheet, both of the following hold:

1. financial assets constitute more than 50 percent of total assets (net of intangible assets); and
2. income from financial assets constitutes more than 50 percent of gross income.

For a manufacturer or dealer group extending trade credit or inter-corporate loans to related concerns, both limbs are tested on the audited balance sheet, not on the company’s stated purpose. A component supplier that carries large receivables and inter-corporate deposits can drift across this line in a year when core manufacturing income is weak, and reviewing this test annually, well before the audit closes, is a routine part of the work.

2.3 NBFC and Bank Compared

Aspect	Bank	NBFC
Demand deposits	Accepted	Not permitted
Payment and settlement system	Participates; issues cheques drawn on itself	Does not participate; cannot issue cheques drawn on itself
Deposit insurance	Eligible deposits insured by DICGC	No DICGC cover for depositors
Principal legislation	Banking Regulation Act, 1949 and RBI Act, 1934	RBI Act, 1934, Companies Act, 2013 and RBI Directions

3. Legal Foundation: Section 45-IA and the 2026 Exemption

3.1 The Base Requirement

The RBI’s FAQ confirms that a new applicant generally needs a minimum Net Owned Fund of ₹10 crore before it can be granted a Certificate of Registration, with category-specific variations described in Section 4 below. Existing NBFC-ICCs, NBFC-MFIs and NBFC-Factors that were registered before 1 October 2022 with a lower Net Owned Fund are on a glide path that reaches ₹10 crore by 31 March 2027.

3.2 The 2026 Amendment Directions

On 29 April 2026, the RBI issued the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026, which came into force on 1 July 2026 and introduced a formal exemption path for certain low-risk NBFCs. The framework sorts companies into three positions:

Position	Profile	Registration
Unregistered Type I NBFC	No public funds (direct or indirect), no customer interface, asset size below ₹1,000 crore on the latest audited balance sheet	Exempt from Sections 45-IA and 45-IC, subject to conditions
Type I NBFC	Same profile, asset size of ₹1,000 crore or more	Registration required as Type I
Type II NBFC	Avails public funds or has a customer interface	Registration required under the standard framework

3.3 Why the Exemption Rarely Helps a Vehicle, Dealer or Supply-Chain Financier

For the group investment companies described in Section 1(d), this exemption can be genuinely useful and is worth testing carefully. For the more common Chennai case, a dealer, manufacturer or fintech company that intends to lend to its own customers, dealers or the general public, the exemption is usually the wrong tool, for three reasons:

1. Customer interface is defined broadly. Lending to borrowers outside a narrow, employment-linked carve-out creates a customer interface, which by itself takes the company out of the Unregistered Type I category, regardless of its asset size.
2. Public funds extend beyond deposits. The RBI’s definition covers funds raised directly or indirectly through bank finance, inter-corporate deposits and similar sources. A company funding its lending book through a working-capital facility is unlikely to qualify.
3. Group asset sizes are aggregated. Where more than one Unregistered Type I NBFC sits within the same group, their asset sizes are added together for the ₹1,000 crore threshold, so several modest group companies can collectively cross the line.

Where a company already holds a Certificate of Registration and genuinely meets the exemption criteria, it may apply for deregistration through PRAVAAH, supported by three years of audited financial statements and prescribed certificates; the one-time window for existing entities closes on 31 December 2026. For most Chennai promoters building a lending or factoring business with an actual customer base, however, the practical starting point remains the standard registration route set out in Sections 4 to 8.

4. NBFC Categories and Minimum Net Owned Fund

Category	Nature of Activity	Minimum NOF (New Applicants)
NBFC-ICC (Investment and Credit Company)	General lending and investment; the default route for vehicle finance, equipment finance, MSME working capital and general-purpose credit	₹10 crore
NBFC-Factor	Purchase or financing of trade receivables as principal business; relevant to auto-ancillary and textile supply-chain financing	₹10 crore
NBFC-MFI	Collateral-free microfinance to eligible low-income borrowers, subject to lending and pricing caps	₹10 crore
Housing Finance Company	Housing finance as principal business; regulated by the RBI since 2019	₹20 crore
NBFC-IFC / IDF-NBFC	Long-tenor infrastructure financing	₹300 crore
NBFC-P2P	Digital platform matching lenders and borrowers, without lending on its own book; a route some OMR-based fintech teams evaluate	₹2 crore
NBFC-AA (Account Aggregator)	Consent-based sharing of financial information between regulated entities	₹2 crore
Core Investment Company (CIC)	Holds investments predominantly in group companies	Registration applies at an asset size of ₹100 crore and above with public funds; separate capital framework

For a Chennai vehicle, equipment or dealer financier, the NBFC-ICC category is usually the natural fit, since it permits both lending and investment without the narrower activity restrictions that apply to a Factor, an MFI or a P2P platform. Where receivables purchase will genuinely be the predominant business, an NBFC-Factor deserves a specific look, since supply-chain and dealer-receivables financing is common across Tamil Nadu’s auto-ancillary and textile trade. Choosing between ICC and Factor before incorporation matters, because the category shapes the object clause, the business plan and the policy set that follow; changing category after that work is built is materially more expensive than settling it at the outset.

5. Eligibility Criteria the RBI Examines

1. Corporate form: only a company incorporated under the Companies Act, 2013 can hold a Certificate of Registration. A partnership, LLP or proprietorship running a dealer-finance or supply-chain-finance business today must first move it into a company, which raises its own questions on transfer of the loan book, stamp duty and taxation.
2. Net Owned Fund: paid-up equity capital and free reserves, less accumulated losses, deferred revenue expenditure and other intangible assets, and adjusted for specified investments in and loans to group companies. Because dealer and supplier groups often carry inter-company balances, the computed NOF can be materially lower than the headline paid-up capital.
3. Principal business test: the proposed model must satisfy the 50-50 test described in Section 2.2.
4. Fit and proper criteria: promoters, directors and significant shareholders must have a sound reputation and a clean regulatory record, and the RBI expects relevant banking, NBFC or financial-services experience on the board. Manufacturing or trading promoters entering financing for the first time often need to add an experienced independent or whole-time director to meet this expectation.
5. Business plan: a five-year plan specific to the company, covering products, borrower or dealer segments, geography, funding, organisation and risk controls.
6. Source of funds and ownership: a transparent shareholding structure and documented source of the capital brought in.

6. The Registration Route for a Chennai or Tamil Nadu Company

1. Settle the model and the category. Confirm the products, borrower or dealer base, funding and category, and rule out or confirm reliance on the 2026 exemption before any capital is committed.
2. Incorporate or restructure the company. Frame the object clause to cover the intended financial activity, obtain DIN and DSC for each proposed director, and test the board against the fit and proper criteria.
3. Bring in and evidence the capital. Infuse the Net Owned Fund and hold it in an unencumbered fixed deposit with a scheduled commercial bank, supported by the bank’s lien-free confirmation and the statutory auditor’s NOF certificate, with both documents agreeing in every particular.
4. Prepare the business plan, projections, declarations and policies described in Section 7.
5. File on PRAVAAH. Since 1 May 2025, applications have been filed on the RBI’s PRAVAAH portal, which replaced COSMOS. A Company Application Reference Number (CARN) is generated on submission.
6. Submit the physical application with the CARN acknowledgement to the RBI Regional Office having jurisdiction over the registered office. For a company registered in Tamil Nadu, this is the RBI Chennai Regional Office at Fort Glacis, Rajaji Salai, whose jurisdiction covers the State of Tamil Nadu and the Union Territory of Puducherry.
7. Answer the RBI’s queries with documented, point-by-point replies.
8. Receive the decision. The RBI grants the Certificate of Registration once satisfied, or returns or rejects the application. Section 45-IA prescribes no fixed time limit for the decision, and the elapsed time depends heavily on how complete the application is on the day it is filed. Lending may begin only after the Certificate is received.

7. Documents and Board-Approved Policies

The RBI publishes the application forms and an indicative checklist, revised from time to time. The principal groups are:

Group	Indicative Contents
Corporate	Certificate of Incorporation, MoA, AoA and board resolutions authorising the application
Promoters and directors	Profiles, KYC, experience, credit reports and declarations
Ownership	Shareholding pattern, group chart and ultimate beneficial ownership
Business plan and projections	Five-year plan with projected profit and loss account, balance sheet and cash flows
Capital	Bank’s lien-free confirmation, statutory auditor’s NOF certificate, audited financials and source-of-funds evidence
Credit	Appraisal, sanction, pricing, monitoring, collection and recovery policies, including vehicle or asset repossession where relevant
KYC and AML	KYC policy aligned with the RBI KYC Directions and PMLA obligations
Customer	Fair Practices Code, interest rate policy and grievance redressal mechanism
Risk	Risk management framework, asset-liability management and internal controls
Digital lending (where applicable)	Lending Service Provider and Default Loss Guarantee arrangements, relevant to OMR-based digital lending teams
Loan documentation	Draft loan agreements, sanction letters, Key Facts Statement and disclosure formats

8. Compliance Once the Certificate of Registration Is Issued

8.1 The Compliance Calendar

1. RBI returns at the frequency applicable to the NBFC’s layer and category.
2. Capital: a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of 15 percent for NBFCs to which it applies, and leverage limits for Base Layer NBFCs.
3. Income recognition, asset classification and provisioning, including timely identification of non-performing assets, which matters particularly for vehicle and equipment loan books with seasonal collection patterns.
4. Liquidity and asset-liability management proportionate to the NBFC’s size.
5. Governance: board committees, periodic fit and proper reviews and a compliance function suited to the layer.
6. Audit and reporting: statutory audit, auditor reporting to the RBI, financial-statement disclosures and concurrent audit where applicable.
7. KYC and AML: customer due diligence, record keeping and reporting to FIU-IND.
8. Grievance redressal and compliance with the RBI Integrated Ombudsman Scheme.
9. Corporate, accounting and tax compliance: Companies Act filings, Ind AS where applicable, and income tax and GST obligations.

Where the RBI finds a contravention in an operating NBFC, it can impose monetary penalties under Section 58G of the RBI Act, and it retains the power to cancel a Certificate of Registration under Section 45-IA(6). A compliance calendar owned by a named person from the first day of registration is the practical safeguard, and I typically help a newly registered client build and hand over this calendar in the first year.

8.2 Scale Based Regulation

Layer	Broad Coverage
Base Layer	Non-deposit-taking NBFCs below ₹1,000 crore in assets, and categories such as NBFC-P2P and NBFC-AA
Middle Layer	Deposit-taking NBFCs, non-deposit-taking NBFCs of ₹1,000 crore and above, and categories such as HFCs, IFCs, CICs and SPDs
Upper Layer	NBFCs specifically identified by the RBI for enhanced regulation
Top Layer	Expected to remain empty; populated only if the RBI sees a substantial increase in systemic risk

A dealer or equipment financier that grows quickly from a modest loan book can move from the Base Layer toward the Middle Layer within a few years, so even a newly registered NBFC should be designed with governance and reporting systems capable of scaling, rather than sized only for its first year of operation.

9. Customer-Facing Obligations, Including Vehicle Repossession

1. Transparent pricing: the interest rate, processing fees and all other charges communicated clearly.
2. Repayment terms: schedules, instalment amounts and the consequences of delay set out in writing.
3. Penal charges: levied as penal charges rather than added to the interest rate, and disclosed upfront.
4. Security and repossession: clear terms for creation and release of security, a documented, non-coercive repossession process for financed vehicles and equipment, and timely return of original property or registration documents on closure of the loan. This is a recurring source of RBI queries and customer complaints for vehicle and equipment financiers specifically, and the recovery agent policy is examined closely.
5. Prepayment and foreclosure: transparent conditions and charges, subject to RBI restrictions.
6. Key Facts Statement: provided for applicable retail and MSME loans before the contract is executed.
7. Digital lending safeguards: borrower consent, data minimisation and disclosure of Lending Service Provider arrangements, relevant to fintech-led lending models.
8. Grievance redressal: a designated grievance officer, a published escalation matrix and information on the RBI Integrated Ombudsman Scheme.

10. Public Deposits: What a Registration Does Not Permit

A Certificate of Registration does not by itself authorise an NBFC to accept public deposits. Only NBFCs holding a specific RBI authorisation for deposit-taking, and continuing to meet its conditions, may do so, and most NBFCs registered today are non-deposit-taking. Deposits with NBFCs, including authorised deposit-taking NBFCs, are not covered by DICGC insurance. Any proposal by a Chennai promoter group to raise funds from relatives, employees or business associates in the form of deposits needs to be examined against the RBI’s deposit rules before any money is accepted; the registration by itself provides no cover for that activity.

11. Chennai and Tamil Nadu-Specific Considerations

A Chennai-based NBFC commonly operates from commercial locations such as Guindy, Anna Salai, T. Nagar, Nungambakkam, Ambattur or the OMR corridor, and increasingly draws its underwriting and technology teams from the state’s Global Capability Centre and IT ecosystem. The registration itself, however, is a national regulatory approval; the standards applied to a Chennai applicant are the same as those applied anywhere else in India.

A few features are, in practice, distinctive to Tamil Nadu applicants:

1. Vehicle and equipment finance depth. The state’s automobile, two-wheeler and auto-component base means a disproportionate share of Tamil Nadu NBFC applications are ICC structures built around secured vehicle, tractor or machinery lending, with collection and repossession policy quality receiving close attention.
2. Supply-chain and factoring interest. The auto-ancillary and textile trade produces genuine demand for receivables and dealer financing, making the NBFC-Factor category, and the ICC-versus-Factor decision described in Section 4, a live question for several manufacturer-promoted applicants.
3. Fintech and digital lending activity. The OMR technology corridor has produced a number of lending-technology teams evaluating either their own NBFC or a Lending Service Provider arrangement with a regulated partner, which brings the digital lending disclosures in Sections 7 and 9 into sharper focus.
4. Regional Office jurisdiction. Physical applications, correspondence and NBFC Ombudsman complaints for Tamil Nadu-registered companies are handled by the RBI Chennai Regional Office at Fort Glacis, Rajaji Salai, whose jurisdiction covers Tamil Nadu and Puducherry.
5. Verification. The RBI publishes a list of NBFCs and Asset Reconstruction Companies registered with it. Prospective borrowers, dealers and business partners can use the RBI’s NBFC list to verify an entity’s registration status before dealing with it.

12. Choosing an NBFC Consultant in Chennai

12.1 What to Look For

1. Financial and certification capability: the ability to compute and evidence the NOF, build defensible projections, and read a manufacturer’s or dealer group’s balance sheet against the principal business test.
2. Current regulatory knowledge: familiarity with PRAVAAH, current NOF thresholds and the 2026 Amendment Directions.
3. Category and sector experience: understanding of the category you propose, particularly ICC and Factor structures relevant to vehicle, equipment and supply-chain financing.
4. Lending and risk understanding: credit appraisal, collections, repossession policy, ALM and provisioning.
5. Coordinated support: working alongside Company Secretaries, legal counsel and the statutory auditor.
6. Continuity after registration: the capacity to manage returns, audits and regulatory change.
7. Written scope: a formal engagement letter setting out deliverables, exclusions and fees.

12.2 Warning Signs

1. Assurances of RBI approval or of a fixed approval date.
2. Suggestions that capital can be shown temporarily or borrowed for the application.
3. Advice to start lending before the Certificate of Registration is received.
4. Claims that every NBFC may accept public deposits.
5. No engagement letter, cash-only payments or claims of special access to regulators.
6. Outdated statements, such as a ₹2 crore NOF for NBFC-ICC or filing on COSMOS.

12.3 Questions to Ask Before Appointment

1. Which category fits our model, ICC or Factor, and what NOF will apply after group adjustments?
2. Does the 2026 exemption apply to us, or does our customer interface rule it out?
3. If we run our finance activity through a partnership or LLP today, how will it move into a company?
4. Who will prepare the five-year plan and projections?
5. Which policies, agreements and customer documents, including the repossession policy, are included?
6. How will RBI queries be handled?
7. What support is included after the Certificate of Registration is issued?

13. Understanding the Cost of an NBFC Engagement

There is no standard fee, and a promoter should see three items separately before work begins:

1. Capital: the NOF is the company’s own money, later deployed in the lending or factoring business; it is not an expense.
2. Regulatory and incidental costs: any application fee prescribed by the RBI, incorporation or restructuring costs, stamp duty, notarisation and certification charges. Published figures for the RBI fee under PRAVAAH are not consistent, so the current position should be checked against the RBI’s own material at the time of filing.
3. Professional fees: driven mainly by the category, the complexity of the group structure, the depth of the business plan, any digital lending arrangements, and whether post-registration compliance is included.

14. How I Support Chennai and Tamil Nadu Promoters

1. Category and structure analysis: settling ICC versus Factor, and testing whether the 2026 exemption is genuinely available before it is relied upon.
2. Restructuring input: the financial and valuation work where a partnership or LLP finance business moves into a company, or where dealer and group funding lines need to be reorganised.
3. NOF computation and certification support, including group-exposure adjustments common to manufacturer and dealer-promoted structures.
4. Five-year business plan and projections built from the company’s own model, together with the fit and proper file.
5. PRAVAAH filing and the physical application for the RBI Chennai Regional Office, and replies to RBI queries through to the Certificate of Registration.
6. Post-registration support: the compliance calendar, concurrent audit where the NBFC’s scale requires it, and share valuations when the NBFC later raises capital, issues ESOPs or changes ownership.

15. Frequently Asked Questions

Q1. We run a vehicle dealership in Chennai and want to finance our own customers. Do we need RBI registration?

A: If financing becomes a substantial part of the company’s assets and income, meeting the principal business test described in Section 2.2, the company cannot carry on that lending business without a Certificate of Registration from the RBI under Section 45-IA. Financing routed through the dealership’s existing trading company, rather than a dedicated NBFC, is one of the more common triggers for this question.

Q2. What capital does a new NBFC-ICC need?

A: A minimum Net Owned Fund of ₹10 crore, held unencumbered and supported by the statutory auditor’s certificate. Group investments and inter-company loans can reduce the computed NOF, so the calculation should be done before the capital is finalised.

Q3. Does the 2026 exemption help a company that finances its own dealer network?

A: Usually not. A company with an actual customer or dealer interface, or one funded through bank facilities or inter-corporate deposits, is unlikely to qualify as an Unregistered Type I NBFC, whatever its asset size. The exemption is better suited to a group investment company with no customer-facing lending.

Q4. Is an NBFC-Factor useful for an auto-ancillary or textile supply chain?

A: It can be, where purchasing or financing receivables will genuinely be the principal business. The category carries the same ₹10 crore NOF as an ICC, and the choice should be weighed against the flexibility of the ICC category, which is not restricted to receivables.

Q5. Where is the physical application submitted for a Tamil Nadu company?

A: To the RBI Chennai Regional Office at Fort Glacis, Rajaji Salai, Chennai, which has jurisdiction over Tamil Nadu and the Union Territory of Puducherry, after the online filing on PRAVAAH.

Q6. Can a partnership firm financing tractors or commercial vehicles register as an NBFC?

A: No. Only a company can hold a Certificate of Registration, so the business must first move into a company, with the transfer of the loan book, stamp duty and tax consequences planned in advance.

Q7. What does the RBI look at most closely for a vehicle or equipment financier?

A: Beyond the standard capital and fit and proper checks, the credit appraisal, collection and repossession policy typically draws close attention, since this is where borrower grievances and RBI complaints most often arise for asset-backed lenders.

Q8. Is there a fixed timeline for RBI approval?

A: No. Section 45-IA prescribes no time limit, and the time taken depends largely on how complete and consistent the application is when filed.

Q9. Can an NBFC consultant help after registration?

A: Yes. Ongoing support typically covers RBI returns, board compliance, KYC and AML reviews, customer grievance systems, audits, policy updates and regulatory reporting.

Q10. How can a borrower or dealer verify a Chennai NBFC before dealing with it?

A: The RBI publishes a list of NBFCs and Asset Reconstruction Companies registered with it. The entity’s name and registration status can be checked against the current RBI list before any agreement is signed.

Q11. Where can a borrower complain about an NBFC?

A: First to the NBFC’s grievance redressal officer, and then under the RBI Integrated Ombudsman Scheme through the RBI’s Complaint Management System.

Q12. Does a Chennai registered office create any separate state-level NBFC licence?

A: No. RBI registration is a single national approval. A Chennai or Tamil Nadu registered office determines which RBI Regional Office handles the application and later correspondence; it does not create a separate regulatory pathway.

16. Conclusion and Contact

For most Chennai and Tamil Nadu promoters, the most valuable work on an NBFC happens before the application is filed: choosing the right category between ICC and Factor, testing honestly whether the 2026 exemption genuinely applies, moving the business into the right corporate form where needed, and computing a Net Owned Fund that survives the RBI’s scrutiny. Once registered, the company needs a compliance calendar, and for vehicle and equipment financiers a credible repossession and collections policy, that runs every year, not only when the RBI writes. Promoters should confirm the latest RBI requirements before acting and should engage an advisor who is transparent about scope and fees.

If your company is evaluating an NBFC registration, weighing an ICC-versus-Factor decision, or setting up compliance after registration, I would be glad to discuss it.

CA Murli Chandak – FCA | IBBI-Registered Valuer (Securities or Financial Assets) | IBBI/RV/07/2021/14408
Website: murlichandak.com
Phone: +91 99985 39902
Email: murlichandak@murlichandak.com
LinkedIn: Connect with CA Murli Chandak

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Related reading: Registered Valuer in Chennai | Virtual CFO in Chennai | GST Consultant in Chennai | IPO Consultant in Chennai | NBFC Consultant in Ahmedabad | NBFC Consultant in Mumbai

Disclaimer: This article is intended for general guidance only and does not constitute legal, financial or regulatory advice. Regulatory positions are stated as at September 2026 with reference to the Reserve Bank of India Act, 1934, the RBI’s Scale Based Regulation framework, the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 (issued 29 April 2026, effective 1 July 2026) and PRAVAAH portal material. Thresholds, conditions, fees and procedures are revised from time to time and should be confirmed against the RBI’s current notifications on the date of any decision or filing.