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  • Writer's pictureAnisha Jain

NBFCs must implement Core Financial Services Solutions by Sept 2025: RBI

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RBI has mandated NBFCs - Middle Layer and NBFCs - Upper Layer with 10+ branches to implement Core Financial Services Solutions (CFSS) by September 2025. Similar to Core Banking System (CBS) in banks, CFSS would enable a seamless customer interface with an end-to-end digital journey for complete life cycle handling.

What exactly is CFSS?

CFSS is similar to the Core Banking Solution (CBS) adopted by banks. CBS is basically the back-end system, that links together several branches of the same bank, which allows customers to manage their accounts and use various banking facilities from any part of the world.

Which NBFCs have to implement CFSS?

Different NBFC categories have been developed by the central bank. The term "middle layer" NBFC refers to non-banking financial organizations that accept deposits regardless of the size of their asset base. In addition, there are NBFCs in this category that have assets worth Rs 1,000 crore or more but do not accept deposits.

The upper layer includes NBFCs that have been clearly identified by the RBI as eligible for enhanced regulatory requirements based on a set of parameters and evaluation methods.

According to the schedule stated in the Circular, two categories of NBFCs are required to implement CFSS on or before September 30, 2025. However, NBFC – the upper layer must ensure that CFSS is implemented in at least 70% of “fixed-point service delivery units” before September 30, 2024.

CFSS implementation is not required for the Base layer NBFCs and Upper layers with NBFCs -"fixed point service delivery unit" less than 10.

Benefits of implementing CFSS

Now that you have a better understanding of the principles and functions of core financial service solutions, let's explore their key advantages:

  • Seamless customer interface: CFSS provides a seamless customer interface in digital offerings and transactions relating to products and services anywhere/ anytime.

  • Leveraging a single view of customer records: CFSS provides centralized data and accounting records thereby minimizing the need to resubmit details to different departments every time. It also helps banks offer a better experience to their customers, thus improving customer retention.

  • Improved Productivity: CFSS improve operational efficiency by reducing the time it takes to connect to multiple branches. This allows banks to process transactions quickly, regardless of the physical location of the customer.

  • Generate Management Information System(MIS): CFSS would be able to generate a suitable Management Information System (MIS) for the purpose of both internal purposes and regulatory reporting

  • Reduced operational costs: Banks can rely on their core platforms to reduce operational costs since these systems require fewer human resources to function.


To meet growing customer needs, NBFCs need to implement a Core Financial Service Solution. To meet dynamic market challenges, NBFCs need IT support to participate in their operations. By using IT in any industry, banks can minimize the operation cost; also banks can offer products & services to customers at competitive rates.

In India, many IT organizations, such as SynoFin, help implement cost-effective core Financial Service Solutions and complete data center solutions.

At SynoFin, we have created the most comprehensive CFSS system with the following capabilities:

  • New-age, feature-rich, SaaS-based lending system, with a flexible pricing model

  • Highly configurable - you can make changes in days instead of weeks

  • Great support with super-fast implementation

  • Ready-made connectors available for migration within 3 weeks - from popular lending systems to SynoFin


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