The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025.
The following has been stated namely: -
• The RBI has introduced a comprehensive regulatory framework for non-banking financial companies (NBFCs) under its Registration, Exemptions and Framework for Scale-Based Regulation initiative, which categorises NBFCs into four layers—Base, Middle, Upper, and Top—based on size, activity, and systemic importance.
• The framework requires NBFCs in higher layers to adhere to stricter norms involving capital adequacy, risk management, disclosure requirements, and governance, while smaller NBFCs benefit from proportionate regulation.
• Registration requirements have been streamlined with clear thresholds and exemptions for certain entities such as account aggregators and peer-to-peer platforms, aiming to reduce compliance burden for low-risk entities.
• The regulation also mandates a phased glide-path for changes such as the 90-day NPA recognition benchmark for Base-Layer NBFCs, giving them time to adjust while aligning with banking norms.
• Overall, the framework seeks to promote transparency, strengthen financial stability, and ensure that the regulatory intensity is aligned with the potential risks posed by an NBFC, thus fostering both growth and resilience in the sector.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/339 DOR.FIN.REC.No.258/03.10.119/2025-26]
