The Reserve Bank of India (RBI), on April 2026, issued the ‘Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026’, following a draft released on February 10, 2026 for stakeholder consultation. The final directions incorporate feedback received till March 4, 2026, along with a statement of comments annexed to the notification.
The amendment provides exemption from registration for NBFCs not availing public funds and not having customer interface (including Type I NBFCs), subject to conditions and an asset size threshold of less than ₹1,000 crore. It also prescribes a mechanism for deregistration or conversion of existing NBFCs in this category, ensuring a smooth transition within the revised regulatory framework.
These changes are part of RBI’s scale-based regulatory approach aimed at rationalising compliance requirements. By reducing regulatory burden for smaller NBFCs while maintaining necessary safeguards, the directions seek to promote ease of doing business alongside financial stability.
[Press Release: 2026-2027/172]
