The Reserve Bank today simplified the process of registration of new NBFCs by reducing the application form and the checklist of documents from the existing set of 45 documents to about eight.

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This has been done to make the process of registration of new Non Banking Financial Companies (NBFCs) "smoother and hassle free", RBI said.

"Secondly, from now onwards, there would be two different types of applications for non-deposit taking NBFCs (NBFC-ND) based on Sources of Funds and Customer Interface," it added.

The processing of cases for Type I - NBFC-ND applicants would be on fast track mode. As these companies will not have access to public fund and will not have customer interface, they will be subjected to less intensive scrutiny/due diligence.

These companies will be prohibited from accessing public funds and having customer interface. In case these companies intend to avail public fund or intend to have customer interface in the future, they are required to take approval from RBI.

RBI further advised that the checklists mentioned by it are indicative and not exhaustive.

"Reserve Bank, may, if necessary, call for any further documents to satisfy itself on the eligibility of the company seeking registration as NBFC," the central bank said in a statement.

In the event of the RBI calling for further documents in addition to those mentioned in the checklist, the applicant company must respond within a stipulated time of one month.

The changes in the registration process of NBFCs is in line with the announcement made in the First Bi-monthly Monetary Policy Statement, 2016-17.