Implementing the core financial services solution will be mandatory for Non-Banking Financial Companies as per the circular released by the Reserve Bank of India. RBI has asked that NBFCs – Middle Layer and NBFCs – upper layer with 10 and more fixed point service delivery units as of October 1, 2022, to get it implemented by September 2025.
This significant step has been taken by the Reserve Bank of India to provide a seamless customer interface and a centralized database. As per the circular, before September 2024, NBFC – Upper Layer must ensure that the core financial services solution is implemented at least in 70 percent of ‘Fixed point service delivery units.’ As per the circular, implementing of core financial services solution is not mandatory for Base Layer and NBFC – Middle and Upper Layers with fewer than 10 ‘Fixed point service delivery units.’
Henceforth, a quarterly progress report on the implementation of CFSS, along with various milestones shall be provided by the NBFCs concerned to RBI starting from the quarter ending March 31, 2023.
