The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025.
The following has been stated namely: -
• These directions apply to NBFCs (excluding HFCs) and come into immediate effect.
• Core Investment Companies (CICs) aren’t typically permitted to open overseas branches. For setting up representative offices abroad (for liaison or research only), prior approval is required and no credit line is allowed.
• Housing Finance Companies (HFCs) shall inform NHB in writing before opening branches domestically. They cannot open branches abroad, and setting up foreign representative offices requires NHB approval, with only liaison/research permitted.
• Deposit-Taking NBFCs
o If Net Owned Funds (NOF) ≤ ₹50 crore, branches or agents may be set up only within the state of its registered office.
o If NOF > ₹50 crore and credit rating is AA or above, branches or agents may be appointed anywhere in India.
o Proposals to open branches must be notified to RBI; if RBI doesn’t reject within 30 days, the NBFC may proceed.
o Branch closure requires publication in newspapers (national + vernacular), 90 days’ notice, and informing RBI at least 7 days after publication.
• This shall come into force from November 28, 2025.
Detailed notification is attached below.
[Notification no. - RBI/DOR/2025-26/342 DOR.RAUG.REC.No.261/23-27-013/2025-26]
