Cardiff Services

NBFC Compliance Audit

NBFC Compliance Audit- Overview

A Non-Banking Financial Company (NBFC) is required to comply with a dual regulatory framework – the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA/ROC). Regular audits are critical to ensure adherence to prudential norms, capital adequacy, asset classification, statutory filings, governance standards, and policy frameworks.

 

An NBFC Compliance Audit reviews whether the company is following RBI guidelines, MCA requirements, tax laws, FEMA regulations, and other applicable statutes. Non-compliance may lead to penalties, restrictions on business, or even cancellation of the NBFC license.

 

At Cardiff Services, we provide end-to-end NBFC Compliance Audit Services in India, helping NBFCs identify compliance gaps, strengthen governance, and stay fully regulator-ready.

Why Choose Cardiff Services for NBFC Compliance Audit

At Cardiff Services, we understand that NBFCs are under constant RBI monitoring and even minor compliance lapses can affect credibility. Our compliance audits provide a 360° regulatory check, ensuring NBFCs meet RBI, MCA, FEMA, and tax obligations seamlessly.

 

We go beyond auditing—we provide strategic advisory and corrective action support, ensuring long-term compliance and inspection readiness. With Cardiff Services, your NBFC is always regulator-ready, transparent, and trustworthy.

Key Features of NBFC Compliance Audit

  • RBI Compliance Review: Verification of prudential norms, NOF, asset classification, and return filings.

  • ROC & MCA Audit: Checking annual return (MGT-7), AOC-4 filings, and statutory registers.

  • FEMA & FDI Compliance: Review of foreign investment transactions and reporting.

  • Policy & Governance Audit: Review of KYC, AML, and Fair Practices Code implementation.

  • Tax & GST Compliance: Examination of direct and indirect tax obligations.

  • Inspection Readiness: Preparation for RBI inspections and statutory audits.

Documents Required for NBFC Compliance Audit

  • Certificate of Incorporation and RBI License (CoR).

  • MOA & AOA of the company.

  • Net Owned Fund (NOF) certificate and auditor’s report.

  • Audited financial statements.

  • RBI returns (NBS-1, NBS-2, NBS-7, ALM, etc.).

  • ROC/MCA filings (MGT-7, AOC-4, DIR-12).

  • Loan portfolio and borrower records.

  • Board resolutions, policies (KYC, AML, Fair Practices Code).

  • FEMA filings (if FDI received).

  • Previous inspection/audit reports.

Step-by-Step Procedure for NBFC Compliance Audit

  1. Pre-Audit Review – Collect documents and understand NBFC’s operations.

  2. Compliance Checklist Preparation – Map RBI, MCA, FEMA, and tax obligations.

  3. Detailed Examination – Review filings, policies, prudential norms, and governance records.

  4. Gap Identification – Highlight lapses, delays, or regulatory risks.

  5. Audit Report Preparation – Document findings with corrective action recommendations.

  6. Management Discussion – Present audit report and suggest compliance improvements.

  7. Post-Audit Support – Assist in rectifying non-compliances and filing pending returns.

Frequently Asked Questions

A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.

If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.

It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.

For a company name search in Cardiff, you may need:

  • Proposed company name

  • Business entity type (Ltd, LLP, Partnership, etc.)

  • Jurisdiction (Cardiff / UK)

  • Owner or shareholder details (if applicable)

  • Business description

A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.

Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms