RBI issues draft Directions for exemption from registration to eligible NBFCs not availing public funds and not having customer interface

The Reserve Bank of India (RBI) has invited public comments on the draft Reserve Bank of India (Non-Banking Financial Companies - Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026. The central bank has proposed modifications to the existing Master Directions on NBFC Registration, Exemptions, and the Framework for Scale-Based Regulation (SBR). The key amendment provides for exemption from mandatory registration under Section 45IA of the RBI Act, 1934, for certain non-deposit taking NBFCs that do not accept public funds, do not have a customer interface, and have an asset size below Rs 1,000 crore. This measure is designed to alleviate the regulatory burden for low-risk entities.

It noted that exemption is limited only to the requirement of obtaining a Certificate of Registration (CoR). Such entities will continue to remain under the regulatory and supervisory purview and the central bank retains powers to issue directions or take action if financial stability concerns arise. The draft changes are aligned with the Scale Based Regulation (SBR) framework, under which NBFCs are classified into different regulatory layers based on size, activity, and risk profile. Overall, the proposed amendments seek to balance ease of doing business for smaller NBFCs with continued prudential supervision by the RBI.

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