meta_id 3065369

On April 15, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026, amending the original directions issued on November 28, 2025. The amendment provides operational flexibility to non-banking financial companies (NBFCs) for branch expansion while maintaining compliance requirements. The amendment introduces a general permission for most NBFCs to open branches without prior RBI approval, unless specifically restricted. However, deposit-taking NBFCs face differentiated requirements based on net owned funds (NOF) and credit rating. Deposit-taking NBFCs with NOF up to ₹50 crore or credit ratings below AA may open branches or appoint agents only within the state where their registered office is located. Deposit-taking NBFCs with NOF exceeding ₹50 crore and credit ratings of AA or above may open branches or appoint agents anywhere in India. The amendment applies to various NBFC categories, including NBFC-D, NBFC-ICC, NBFC-Factor, NBFC-MFI, NBFC-IFC, IDF-NBFC, housing finance companies (HFCs), and core investment companies (CICs), with specific provisions tailored to each category. The directions also clarify that CICs and HFCs are excluded from certain provisions while included in others, and replace the previous wind-up mechanism for CICs with a review and recall of approvals process. The Amendment Directions came into force with immediate effect on April 15, 2026, and are issued under Chapter IIIB of the Reserve Bank of India Act, 1934, Section 30A of the National Housing Bank Act, 1987, and related enabling provisions. **Reference:** Reserve Bank of India Notification RBI/2026-2027/11 (April 15, 2026)