RBI has in a communication to all non-banking financial companies said that it has been decided that NBFCs – middle Layer and NBFCs – upper layer with 10 and more fixed-point service delivery units as on October 1, 2022, shall be mandatorily required to implement core financial services solution (CFSS), 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’ functions, provide centralised database and accounting records, and be able to generate suitable MIS, both for internal purposes and regulatory reporting.
The timeframes for implementation of the requirement for the NBFCs with 10 or more fixed point service delivery units will be on or before September 30, 2025. However, NBFC-UL shall ensure that the CFSS is implemented at least in 70% of fixed-point service delivery units on or before September 30, 2024. A quarterly progress report on the implementation of the CFSS shall be furnished by the NBFC to the Senior Supervisory Manager (SSM) Office of RBI starting from the quarter ending March 31, 2023
