What is the minimum capital for NBFC license?

The minimum capital requirement for obtaining a Non-Banking Financial Company (NBFC) license in India is ₹2 crore, as mandated by the Reserve Bank of India (RBI). However, for specialized NBFCs like NBFC-MFIs (Microfinance Institutions), NBFC-Factors, and NBFC-Infrastructure Finance Companies, the required minimum capital may vary.
This capital requirement ensures that NBFCs have enough financial resources to operate sustainably and manage risks. Applicants must present proof of this capital adequacy when applying for the license. The amount must be in the form of paid-up equity capital and not preference shares. Additionally, this threshold helps maintain financial stability and protect the interests of depositors or borrowers relying on NBFC services.
Increased regulatory requirements, such as governance standards and stricter compliance measures, apply to NBFCs based on their asset size and business model.