NBFC Advisor

Running an NBFC? These 3 Compliance Gaps Can Put Your License at Risk

  • 18-Nov-2025
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Running an NBFC? These 3 Compliance Gaps Can Put Your License at Risk

Many NBFCs don’t fail because of bad business decisions — they fail because of missed compliance.

In today’s regulatory environment, RBI’s supervision has become tighter, digital reporting systems have advanced, and compliance timelines are stricter than ever. Even a small delay or missing update can lead to notices, audits, penalties, and in severe cases, threats to your NBFC license.

Let’s look at the three most common compliance gaps that put NBFCs at risk.

1. Delayed or Missed CKYC Uploads

CKYC is mandatory for all customers.
But many NBFCs still struggle with:

  • Delayed uploads

  • Incorrect data entry

  • Missing documents

  • System errors without follow-up

A pending CKYC upload is one of the first red flags for regulators. Consistent delays indicate poor KYC governance — something RBI does not ignore.

2. Incomplete FIU-IND Reporting

Every NBFC must file:

  • Cash Transaction Reports (CTR)

  • Suspicious Transaction Reports (STR)

  • NTR / CCR filings where applicable

Most non-compliances happen due to:

  • Missing STRs

  • Wrong transaction categorization

  • Delayed CTR uploads

  • Poor AML monitoring systems

FIU-IND reporting is directly linked to AML risk, and any gap in this area invites serious scrutiny.

3. Missing NESL Debt Information Updates

NESL monthly reporting has become mandatory for all loan accounts.
NBFCs often miss:

  • Timely monthly updates

  • Correct loan data mapping

  • Closure updates

  • Arrear/overdue entries

NESL is the central source of debt information in India, and inaccurate reporting compromises data integrity — a major compliance breach.

Other Critical Compliance Areas NBFCs Must Strengthen

To stay audit-ready, every NBFC should ensure:

  • ✔ Updated internal policies (KYC, AML, Credit, Recovery, Fair Practices)

  • ✔ Accurate and complete documentation

  • ✔ System-driven audit trails

  • ✔ Staff training on KYC, AML, FIU, and NESL rules

  • ✔ Data accuracy across all regulatory portals

A strong compliance structure not only prevents penalties but also builds trust with regulators, lenders, investors, and customers.

How We Help NBFCs Stay Fully Compliant

We support NBFCs with end-to-end compliance management, including:

  • CKYC uploads

  • FIU-IND reporting

  • NESL monthly submissions

  • Policy drafting & updating

  • Internal audits & record reviews

  • Staff training on KYC/AML norms

Stay compliant, avoid penalties, and protect your NBFC license with expert assistance.

Contact Us for a Free Consultation

📞 +91 93113 47006

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