Financial Services ERP for India

NBFCs have become a significant segment of Indian financial services, with RBI classifying them into multiple categories including investment and credit companies, microfinance institutions, housing finance companies, and infrastructure finance companies. Each category has different prudential norms for capital adequacy, asset classification, provisioning, and income recognition. The RBI scale-based regulation framework introduced in 2023 further differentiates NBFCs into base, middle, upper, and top layers with progressively stringent requirements. Loan management for NBFCs must track disbursements, EMI schedules, prepayments, NPA classification based on days past due, and provisioning calculations that follow RBI-prescribed percentages.

GST on financial services adds complexity because many financial products have specific valuation rules. Loan processing fees attract 18% GST. Interest income on loans is exempt. Insurance premiums have varying GST rates. Foreign exchange transactions use a tiered valuation method based on the transaction value. Mutual fund distributor commissions follow different GST treatment depending on whether the distributor is registered under composition scheme.

Yukti provides financial services firms with regulatory reporting modules that generate data in RBI, SEBI, and IRDAI submission formats. The loan management system handles the complete lifecycle from application scoring through disbursement, EMI collection, NPA classification, and provisioning as per RBI norms. For NBFCs, the system tracks capital adequacy ratios and generates the quarterly and annual returns required under scale-based regulation. The treasury module manages investment portfolios with mark-to-market valuation following RBI guidelines. GST handling applies the correct treatment across different financial products and services automatically, including the special valuation rules for foreign exchange transactions.