mumbai reserve bank on wednesday asked certain class of nonbanking financial companies nbfc to mandatorily implement core financial services solution cfss by september 30 2025 in order to provide seamless customer interface as well as have a centralised data basein a circular reserve bank of india rbi said 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 cfsscfss is akin to the core banking solution cbs adopted by bankscfss 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 it saidas per the timeline prescribed in the circular the two categories of nbfcs have to implement cfss on or before september 30 2025however nbfc upper layer shall ensure that the cfss is implemented at least in 70 per cent of fixed point service delivery units on or before september 30 2024in the case of nbfc base layer and nbfc middle and upper layers with fewer than 10 fixed point service delivery units implementation of cfss is not mandatoryhowever they may consider implementation of a cfss for their own benefit the circular saidfurther a quarterly progress report on implementation of cfss along with various milestones shall be furnished by the nbfcs concerned to rbi starting from the quarter ending march 31 2023the middle layer consists of all deposit taking nbfcs nbfcds irrespective of asset size nondeposit taking nbfcs with asset size of rs 1000 crore and above nbfcs undertaking activities like standalone primary dealers infrastructure debt fund nbfcs core investment companies housing finance companies infrastructure finance companies too fall in the middle layerthe upper layer comprises those nbfcs which are specifically identified by rbi as warranting enhanced regulatory requirement based on a set of parameters and scoring methodologya fixed point service delivery unit is a place of operation from where the business activity of nonbanking financial intermediation is carried out by a nbfc and which is manned either by its own staff or outsourced agentsit carries uniform signage with name of nbfc and functions under administrative control of the nbfc concerned