NBFC License Restoration

NBFC License Restoration

When RBI cancels or suspends an NBFC licence, the company can’t lend, accept repayments, raise capital, or operate legally. Sometimes the issue is non-compliance, low NOF, delayed filings, governance gaps, or inactivity—not intent. The good news: many licences can be restored with the right documentation, representation, and corrective roadmap.

We assist NBFCs in restoring their licence, rebuilding compliance, and re-entering the financial ecosystem.

Common Reasons for Licence Cancellation

• Failure to maintain minimum Net Owned Fund

• Persistent non-filing of RBI returns

• Weak governance, KYC/AML lapses, or audit issues

• Dormant or non-operational business

• Incorrect disclosures or regulatory misreporting

• Violating RBI directives or operating beyond authorised activities

Understanding the root cause is step one. Acting quickly is step two.

What We Assist With

Diagnostic Review

• Compliance audit and gap assessment

• Review of RBI cancellation order, notices, and observations

• Evaluation of NOF, policies, governance, and reporting history

Corrective Compliance Action

• Updating regulatory filings and pending returns

• Restoring NOF, restructuring share capital or funding

• Policy overhaul: KYC/AML, Fair Practice Code, risk, audit

• Board strengthening and internal control setup

Representation Before RBI

• Drafting restoration application and supporting submissions

• Preparing justification, undertakings, and evidence of corrective action

• Communication and follow-ups with RBI officers

Post-Restoration Support

• Compliance calendar, monitoring, internal audit, advisory

• Ongoing reporting to ensure future prevention

Documents Usually Required

• RBI cancellation or restriction order

• Financial statements, NOF computation, auditor certificates

• Compliance records, policy documents, board resolutions

• RBI return filings and proof of rectifications

• Shareholding and capital structure details

• Business plan and revised governance framework

Timeline

• Compliance rectification: 3–12 weeks

• Application preparation: 2–4 weeks

• RBI review: varies based on complexity and response cycle

(Actual duration depends on severity of violations and documentation readiness.)

Why Act Quickly

• Prevent legal exposure and penalties

• Protect promoter reputation and lending relationships

• Restore business continuity and customer confidence

• Preserve valuation and investor interest