February 23, 2022<\/p>\n\n\n\n
All Non-Banking Financial Companies<\/p>\n\n\n\n
Madam \/ Dear Sir,<\/p>\n\n\n\n
A reference is invited to para 3.2.3 (j) of the Reserve Bank\u2019s Circular Ref. DOR.CRE.REC.No.60\/03.10.001\/2021-22 dated October 22, 2021 on \u2018Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs\u2019 in terms of which NBFCs with 10 and more branches are mandated to adopt Core Banking Solution.<\/p>\n\n\n\n
2.<\/strong> Accordingly, it has been decided that NBFCs \u2013 Middle Layer and NBFCs – Upper Layer with 10 and more \u2019Fixed point service delivery units\u20191 as on October 1, 2022 shall be mandatorily required to implement \u2018Core Financial Services Solution (CFSS)\u2019, akin to the Core Banking Solution (CBS) adopted by banks. The CFSS shall provide for seamless customer interface in digital offerings and transactions relating to products and services with anywhere \/ anytime facility, enable integration of NBFCs\u2019 functions, provide centralised database and accounting records, and be able to generate suitable MIS, both for internal purposes and regulatory reporting.<\/p>\n\n\n\n 3.<\/strong> The timeframe for implementation of the requirement as indicated in Para 2 above shall be as under :<\/p>\n\n\n\n 4.<\/strong> A quarterly progress report on implementation of the Core Financial Services Solution, along with various milestones as approved by the Board \/ Committee of the Board, shall be furnished by the NBFC to the Senior Supervisory Manager (SSM) Office of Reserve Bank starting from quarter ending March 31, 2023.<\/p>\n\n\n\n 5.<\/strong> This circular is issued under Sections 45L and 45M of Reserve Bank of India Act,1934.<\/p>\n\n\n\n Yours faithfully,<\/p>\n\n\n\nCategory of NBFC<\/strong><\/td> Timeframe for implementation<\/strong><\/td><\/tr> NBFC \u2013 Middle and Upper Layers with 10 or more \u2018Fixed point service delivery units\u2019<\/td> On or before September 30, 2025
However, NBFC-UL shall ensure that the CFSS is implemented at least in 70 per cent of \u2018Fixed point service delivery units\u2019 on or before September 30, 2024.<\/td><\/tr>NBFC \u2013 Base Layer and NBFC \u2013 Middle
and Upper Layers with fewer than 10
\u2019Fixed point service delivery units\u2019<\/td>Not mandatory. However, they may
consider implementation of a Core
Financial Services Solution for their own
benefit.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
(Arnab Kumar Chowdhury)
Chief General Manager<\/p>\n\n\n\n