{"id":33130,"date":"2024-11-11T12:50:12","date_gmt":"2024-11-11T07:20:12","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/learn\/?p=33130"},"modified":"2026-02-26T13:43:59","modified_gmt":"2026-02-26T08:13:59","slug":"file-an-xbrl-return-for-nbfc","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/file-an-xbrl-return-for-nbfc\/","title":{"rendered":"How to File an XBRL Return for NBFC?"},"content":{"rendered":"

XBRL for Non-Banking Financial Companies in India is highly relevant for enhancing existing regulatory reporting, bringing clarity, uniformity, and precision. Considering the rapid growth of the NBFC sector, particularly in India, where it offers critical financial services like lending, asset-based financing, and microfinance<\/a>, an efficient and organised reporting system becomes inevitable. This idea has evolved into an international standard for reporting with the development of XBRL, which will help gather, process, and understand the information.<\/p>\n

What is XBRL and how does it work?<\/h2>\n

XBRL refers to an internet standard for sharing and passing on business and other financial information. It utilises a special tagging schema whereby every piece of information is assigned a unique marker, thus making it easy to identify, locate, and manipulate such information within and across various systems. For instance, such related terms as \u201ctotal revenue\u201d and \u201cnet income\u201d or \u201cassets\u201d and \u201cliabilities\u201d will be distinguished with the aid of XBRL tags. This will enable regulatory agencies to gather, validate, and analyse information in a totally automated manner. Therefore, it will not require human intervention. This minimises errors and fosters confidence in the statistics supplied.<\/p>\n

Non-Banking Financial Companies (NBFCs) reporting through XBRL enables the proper representation of financial items, such as eligible and ineligible assets, borrowings and revenues, profit and loss, non-performing assets, etc. For this purpose, the NBFCs are to file their periodical returns in specified formats that are, from time to time, revised by the Reserve Bank of India and stamped with a taxonomy with certain numbers embedded within various sections. The returns are uploaded into the XBRL database of the RBI to check against the rules for appropriate regulatory approval and action.<\/p>\n

Applicability of XBRL Returns for NBFCs<\/h2>\n

In India, the Reserve Bank dictates non-banking financial companies\u2019 use of XBRL<\/a> (eXtensible Business Reporting Language) when filing returns with it. Most forms of NBFCs will require the use of XBRL when filing their returns with the RBI, although this varies based on their size, kind, and regulatory requirements. With a circular issued by the RBI on the usage of XBRL for return filing by NBFCs commencing from the period of 2019-20, the online return filing methods for ND-NSI type NBFCs were phased out.<\/p>\n

NBFCs have to mandatorily use XBRL as their return reporting format if their asset size is less than Rupees Five Hundred Crores. These NBFCs are to be registered at the XBRL-promoted platform and updated with company details, including the contact details of their Key Managerial Personnel<\/a> (KMP), as may be required from time to time by the Reserve Bank of India. The email address used for registration of the user ID will be the channel of communication between the department and the NBFCs.<\/p>\n

Those NBFCs whose asset size is less than one hundred crore rupees would submit the following forms:<\/p>\n

    \n
  1. DNBS 02 <\/strong>\u2013 NBFCs that accept and hold deposits are required to furnish this form quarterly, as specified by financial parameters and indicators. The return would be required to be furnished within fifteen days from the end of the quarter.<\/li>\n
  2. DNBS 10<\/strong> \u2013 It is the certification of the statutory auditor return and shall be filed annually within one month after closing the balance sheet. Apart from this, the return shall not be made after December 31.<\/li>\n
  3. DNBS 13<\/strong> \u2013 These returns are in respect of overseas investments and have to be filed within fifteen days of the close or end of every quarter. Every NBC, which makes overseas investments, has to file these returns every quarter.<\/li>\n<\/ol>\n

    Those NBFCs having assets of above Rupees One Hundred Crore but less than Rupees Five Hundred Crore shall fill up and file the following forms:<\/p>\n

      \n
    1. DNBS 04A<\/strong> \u2013 It is a short-term dynamic liquidity return for which submission has to be made on a quarterly basis, fifteen days before the end of the quarter.<\/span><\/li>\n
    2. DNBS 04B<\/strong> \u2013 This is a structural liquidity and interest rate sensitivity return filed monthly within 10 days prior to the closure or end of the month.<\/li>\n<\/ol>\n

      Besides, the assets between Rupees One Hundred Crores to Rupees Five Hundred Crores, also fall in the category of return for NBFCs, and returns have to be submitted under the forms DNBS 10, DNBS 02 and DNBS 13.<\/p>\n

      How to File an XBRL Return? \u2013 Step-by-Step Guide<\/h2>\n

      Organizations file the XBRL return for non-banking financial companies in India through an approach or set of steps prescribed by the Reserve Bank of India. These help NBFCs to report enhanced financial information that meets regulatory compliance requirements. These steps will, therefore, ensure that the NBFCs file their XBRL returns with the RBI accurately and effectively. Once done, this will have ensuing consequences of ensuring compliance from the regulatory front and providing and propelling a healthy financial environment. The points below will help us understand the process of filing the XBRL return in a better way:<\/p>\n