The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Non-Banking Financial Companies- Transfer and Distribution of Credit Risk) Directions, 2025.
The following has been stated namely: -
• These directions shall be applicable to Non-Banking Financial Companies, excluding Housing Finance Companies (HFCs).
• NBFCs, shall acquire loans only from a transferor specified as a lender in paragraph 12(4) unless specifically permitted.
• No NBFC shall undertake any loan transfers or acquisitions other than those permitted under Part A of this direction and in the manner prescribed therein.
• The directions in Part A will be applicable to all loan transfers undertaken by the NBFC, including transfer of loans through novation or assignment, and loan participation.
• These directions shall apply only to NBFCs mentioned in paragraph 12(4) as transferor(s) or transferee(s) in loan transfers, unless specifically made applicable to other categories of entities as transferee(s) as per the specific permissions as per Paragraphs 58 and 62.
• In respect of transferee(s) other than lenders mentioned in paragraph 12(4) and Asset Reconstruction Companies (ARCs), which are also financial sector entities, the prudential norms, including asset classification and provisioning post the transfer shall be as per the respective regulatory frameworks laid down by the respective financial sectoral regulators, viz., Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India, Pension Fund Regulatory and Development Authority, and International Financial Services Centres Authority.
[Notification No. RBI/DOR/2025-26/352]
