The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025.
The following has been stated namely: -
• These Directions shall be applicable to Non-Banking Financial Companies (hereinafter collectively referred to as ‘NBFCs’ and individually as ‘an NBFC’) excluding Housing Finance Companies (HFCs)
• The Board of an NBFC intending to undertake distribution of mutual fund products shall approve a comprehensive policy regarding undertaking mutual funds distribution, customer appropriateness and suitability as well as grievance redressal mechanism in addition to fulfilling the other terms and conditions.
• An NBFC’s investment policy shall have suitable provisions governing its investments in an AIF Scheme, compliant with extant law and regulations
• The Limits on Investments and Provisioning has been stated in the Directions.
This shall come into force on November 28, 2025
[Notification No. RBI/DOR/2025-26/343]
