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2026-04-30 09:03:41 · pthandapani@vixio.com
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Press Releases - Reserve Bank of India

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TITLE: India's Reserve Bank Issues Amendment Directions on Non-Banking Financial Company Registration Requirements BODY: On April 29, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026. This follows a consultation period that concluded on March 4, 2026, during which the RBI sought stakeholder feedback on draft amendment directions initially released on February 10, 2026. The amendment directions introduce key changes to the regulatory framework for non-banking financial companies (NBFCs). The RBI has exempted NBFCs not availing public funds and not having customer interface—including Type I NBFCs—from registration requirements if their asset size is less than ₹1,000 crore, subject to specified conditions. The directions also establish procedures for deregistration or conversion of existing NBFCs not availing public funds and not having customer interface, including Type I NBFCs. The RBI examined all comments and feedback received during the consultation period and incorporated consequent modifications into the final amendment directions. A statement detailing the comments and feedback received has been provided in an annex to the press release. These amendments form part of the RBI's broader review of its regulatory framework for NBFCs and reflect a scale-based regulatory approach. The changes are intended to streamline compliance requirements for smaller NBFCs operating without public funds and customer-facing operations, while maintaining appropriate regulatory oversight. The amendment directions are effective immediately upon issuance. REFERENCE: Reserve Bank of India Press Release, April 29, 2026: RBI issues Amendment Directions on review of regulatory framework including registration requirement for 'NBFCs not availing public funds and not having customer interface'
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