NBFC Compliance Audit
NBFC Compliance Audit
RBI expects every NBFC to follow capital norms, KYC rules, lending practices, reporting standards, governance, customer protection, and IT oversight. A compliance audit checks whether the company is actually doing that in real life—not just on paper.
We help NBFCs identify gaps early, fix them, and stay inspection-ready.
What the Audit Covers
Regulatory Compliance
Review of RBI circulars, directions, and adherence
Verification of NBS returns and supervisory filings
Capital adequacy, NOF, exposure limits, provisioning
KYC, AML & Customer Onboarding
Customer identification, documentation, CKYC uploads
Screening, monitoring, PEP/AML compliance
Grievance redressal and Fair Practice Code review
Lending & Portfolio Management
Loan sanction, agreements, underwriting trails
NPA recognition and provisioning accuracy
Interest rate policy, recovery practices, disclosures
Governance & Controls
Board oversight, committees, policies, minutes
Internal audit framework and risk monitoring
Outsourcing, vendor and IT compliance
Financial & Operational Review
Reconciliation, reporting, MIS reliability
Related party transactions and connected lending
Statutory and regulatory record maintenance
Documents Generally Required
Loan files, sanction notes, agreements
NBS returns, financials, internal MIS reports
KYC/AML records, CKYC data, onboarding SOPs
Board resolutions, committee minutes, policies
RBI correspondence and inspection reports
Audit Process
Scoping and data request
Review of documents, systems, and processes
Discussions with management and compliance team
Draft report with findings and risk grading
Final audit report with corrective action plan
Why NBFCs Need a Compliance Audit
Early detection of regulatory gaps
Better preparedness for RBI inspections
Protects licence, valuation, and borrower trust
Helps management strengthen controls and governance
Supports investors, lenders, and due diligence requirements
Frequently Asked Questions
Yes. RBI expects NBFCs to periodically assess and document compliance.
At least once a year. High-growth NBFCs may do quarterly reviews.
No. Compliance audit focuses on regulatory and operational adherence, not just financials.
Often yes, depending on data access and portfolio size.
A corrective action plan is prepared and implemented, then documented for RBI.