CFSS, short for Core Financial Services Solution, is a regulatory requirement issued by the Reserve Bank of India (RBI) for Non-banking Finance Companies (NBFCs) in India. The mandate stipulates that NBFCs operating with 10 or more branches must implement the Core Banking Solution. This means that these NBFCs are obligated to adopt a centralized system to manage their financial services.
Furthermore, NBFCs with 10 or more fixed point service delivery units in the upper and middle layers are required to implement CFSS by September 30, 2025. However, for NBFCs with fewer than 10 fixed point service delivery units, the adoption of CFSS is not mandatory. Nevertheless, it is advisable for them to consider implementing CFSS as it can contribute to the smooth functioning of their business operations.
CFSS is a comprehensive platform that automates the complete operational process of NBFCs, ensuring a smooth and hassle-free customer experience. By integrating NBFC functions into a centralised database, CFSS provides anytime, anywhere services and accounting records. Additionally, the platform includes management information systems (MIS) for efficient regulatory reporting.
The RBI introduced CFSS in order to exert more automation-based control over NBFCs. The primary objective of the RBI is to facilitate the automation of NBFC operations, aligning them with the growing customer demands. By embracing CFSS solution, NBFCs can enhance transparency for depositors and enable effective business monitoring. It is similar to the core banking solution used by the banks.
Nelito’s FincraftTM Integrated Lending Management Software (ILMS) for NBFCs is an end-to-end lending management software tailored to NBFC operations on the ground through integrated LOS, LMS, Collection, and Recovery modules. ILMS covers both operational and strategic requirements, resulting in enhanced customer service through technology with a human touch, which is perfectly aligned with CFSS.
To more about our CFSS solution write us at marketing@nelito.com or visit our website https://www.nelito.com/
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