RBI Notifies Draft RBI (NBFC –Registration, Exemptions And Framework For Scale Based Regulation) Amendment Directions, 2026

Reserve Bank of India ("RBI") by way of notification dated 10.02.2026 issued the Draft RBI (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 ("NBFC Amendment Directions")¹ to amend the RBI (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025 dated 28.11.2025 ("NBFC Principal Directions"). The proposed key amendments under the draft NBFC Amendment Directions are as follows:

1. Insertion of the following terms:
   
   1. 'NBFC not availing public funds and not having any customer interface' shall mean anNBFC registered with RBI as Type I NBFC or otherwise and: (i) Not accepting public funds and not intending to accept public funds in the future; and (ii) Not having customer interface and not intending to have customer interface in the future. The terms 'public funds' and 'customer interface' shall have the meaning as provided under the NBFC Principal Directions.
   2. 'Type I NBFC' shall mean 'NBFC not availing public funds and not having any customerinterface' and holding Certificate of Registration ("CoR") as 'Type I NBFC' issued by the RBI.
   3. 'Type II NBFC' means an NBFC which is granted CoR by the RBI as NBFC other than'Type I NBFC'.
   4. 'Unregistered Type I NBFC' means 'NBFC not availing public funds and not having anycustomer interface' as defined in these NBFC Amendment Directions and exempt from the provisions of Section 45IA of the RBI Act, 1934 ("RBI Act") which mandates registration of NBFC with the RBI.
2. Insertion of framework for Registration for 'NBFCs not availing public funds and not having any customer interface':
   
   1. 'NBFCs not availing public funds and not having any customer interface' having asset sizeof less than INR 1,000 crore stand exempted from the requirement of registration with the RBI as prescribed under Section 45IA of the RBI Act with effect from 01.04.2026. Existing NBFCs including those holding CoR as 'Type I NBFC' as on 01.04.2026 and fulfilling the exemption criteria may apply for deregistration within 6 months of effectiveness of the NBFC Amendment Directions, i.e. by 30.09.2026.
   2. The application for deregistration shall be made through PRAVAAH on the company'sletter head along with the following documents: (i) Original CoR to be submitted physically to RBI. (ii) Audited financial statements for the last three financial years. (iii) Status of public funds and customer interface for the last three financial years. (iv) Statutory Auditor's Certificate confirming absence of public funds and customer interface as on date. (v) Board Resolution confirming that the Company does not currently have public funds or a customer interface and does not intend to access the same in the future; that it shall obtain registration as a Type II NBFC if it proposes to avail public funds and/or have a customer interface, or as a Type I NBFC if its asset size reaches INR 1,000 crore or above; and undertaking to disclose its status as an 'Unregistered Type I NBFC' and the position regarding public funds and customer interface in the Notes to Accounts to its financial statements.
   3. 'NBFCs not availing public funds and not having any customer interface', having asset sizeof INR 1,000 crore or more shall mandatorily apply for registration as 'Type I NBFC' through PRAVAAH portal along with prescribed documents. RBI shall issue CoR upon satisfaction of registration conditions. Existing such NBFCs not holding CoR as 'Type I NBFC' shall not be eligible for relaxed regulatory requirements available to NBFCs holding such Certificate. If any such NBFC intends to access public funds and/or have customer interface, it shall seek registration as 'Type II NBFC' under section 45IA of the RBI Act.
   4. If an 'Unregistered Type I NBFC' intends to undertake overseas investment in the financialservices sector, it shall obtain registration with RBI and comply with provisions of RBI (NonBanking Financial Companies – Undertaking of Financial Services) Directions, 2025 including obtaining prior approval of RBI. iii. Corresponding revisions have been carried out in the 'Applicability Clauses' of other RBI Directions governing NBFCs, whereby the reference to "NBFC not availing public funds and not having any customer interface" has been substituted with "NBFC holding a CoR as a 'Type I NBFC'. The NBFC Amendment

Directions, upon approval, shall come into force from 01.04.2026.

Footnote

1. RBI Draft (Non-Banking Financial Companies- Registeration, Excemptions and Frameworks for scale based regulation) Amendment Directions, 2026

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