The RBI has mandated that non-banking financial companies (NBFCs) – middle and upper layer — having 10 and more ‘Fixed point service delivery units’ as on October 1, 2022, will have to implement Core Financial Services Solution (CFSS), akin to the Core Banking Solution (CBS) adopted by banks, by September 30, 2025.
Core Financial Services Solution (CFSS) for NBFC is similar to what Core Banking Solution (CBS) is for banks. NBFC-Upper Layers (UL) have to also ensure that the CFSS is implemented at least in 70 per cent of ‘Fixed point service delivery units’ on or before September 30, 2024.
For base layer NBFC and middle and upper layer NBFCs having fewer than 10 fixed point service delivery units implementation of CFSS has been made voluntary.