RBI Issues Separate Prudential Norms for Deposit & Non-Deposit NBFCs
No longer current — replaced by RBI (NBFC - Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026
Source: Reserve Bank of India · RBI/2006-2007/265 · issued 22 Feb 2007 · ~2 min read
Quick answerRBI replaced the 1998 Prudential Norms with two separate directions for deposit-taking and non-deposit-taking NBFCs, effective February 22, 2007. NBFCs with assets of ₹100 crore or more must now submit monthly NBS 6 returns within seven days of month-end, starting April 30, 2007.
What changed
RBI superseded the 1998 Prudential Norms Directions with two distinct sets: one for deposit-taking NBFCs (including RNBCs) and another for non-deposit-taking NBFCs, effective February 22, 2007. A key change is that all NBFCs and RNBCs with total assets of ₹100 crore or more must now file the NBS 6 return monthly within seven days of month-end, starting with the month ending April 30, 2007. NBFCs with deposits of ₹50 crore or more must continue submitting the Capital Market Exposure return monthly until March 31, 2007, after which revised instructions will apply.
What it means for you
This bifurcation simplifies compliance by tailoring norms to the specific risk profiles of deposit-taking versus non-deposit-taking NBFCs. The new monthly reporting requirement for larger NBFCs (assets ≥₹100 crore) will enhance RBI's surveillance of systemic risks, requiring lenders to tighten their data reporting processes. NBFCs with significant deposit bases must also prepare for revised capital market exposure reporting post-March 2007.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Identify whether your NBFC is deposit-taking or non-deposit-taking and comply with the respective 2007 Directions.
If total assets are ₹100 crore or more, set up systems to submit NBS 6 return monthly within 7 days of month-end, starting April 30, 2007.
If deposits are ₹50 crore or more, continue filing Capital Market Exposure return monthly until March 31, 2007, and watch for revised instructions.
Review and update internal prudential norms policies to align with the new separate directions.
Who it affects
All deposit-taking NBFCs (including RNBCs), All non-deposit-taking NBFCs, Systemically important non-deposit-taking NBFCs, NBFCs with total assets of ₹100 crore or more, NBFCs with deposits of ₹50 crore or more
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the key reporting change for large NBFCs?
NBFCs and RNBCs with total assets of ₹100 crore or more must now submit the NBS 6 return on a monthly basis within seven days of the close of the month. The first such return is due for the month ending April 30, 2007.
Do the old 1998 Prudential Norms still apply?
No, the 1998 Prudential Norms Directions have been superseded by two separate sets of Directions issued on February 22, 2007—one for deposit-taking NBFCs and one for non-deposit-taking NBFCs. All NBFCs must now comply with the relevant 2007 Directions.
What about NBFCs with deposits of ₹50 crore or more?
They must continue submitting the Capital Market Exposure return as before until the month ending March 31, 2007. After that, revised instructions will apply, so they should stay alert for further RBI communication.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Superseded byRBI (NBFC - Registration, Exemptions and Framework for Scale Based Regulation) A
RBI’s words: “it is necessary to amend the Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/265
DNBS.PD/ CC. No. 89/03.05.002 /2006-07
February 22, 2007
All Non-Banking Financial Companies
(including RNBCs)
Dear Sir,
Prudential Norms Directions – Deposit taking and Non-deposit taking Non-Banking Financial Companies (NBFCs)
Please refer to our circular DNBS.PD/ CC. No. 86/ 03.02.089 /2006-07 dated December 12, 2006 in terms of which regulatory framework for systemically important non-deposit taking NBFCs was prescribed. The Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 contained in Notification DFC 119/DG(SPT)-98 dated January 31, 1998 were to be amended accordingly to incorporate changes.
2. It was felt that a separate set of Prudential Norms Directions in supersession of the extant Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 may be issued for deposit taking NBFCs (including RNBCs) and non-deposit taking NBFCs for operational convenience. Accordingly, two sets of Prudential Norms Directions namely, Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 contained in Notification No. DNBS. 192/ DG (VL)-2007 dated February 22, 2007 for deposit taking NBFCs and Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 contained in Notification No. DNBS.193/ DG (VL)-2007 dated February 22, 2007 for non-deposit taking NBFCs have been enclosed for meticulous compliance by all concerned.
3. It may be observed from paragraph 22 of the Notification applicable to deposit taking NBFCs that it has been decided that henceforth all NBFCs and RNBCs with total assets of Rs. 100 crore and above should submit the return as prescribed in the format (NBS 6) on monthly basis within seven days of the close of the month to which it relates. The first such return may be submitted for the month ending April 30, 2007.
4. However, those NBFCs with deposits of Rs 50 crore and above may continue to submit return on Capital Market Exposure as hitherto being submitted by them till the month ending March 31, 2007, thereafter revised instructions shall be applicable.
Yours faithfully
(P. Krishnamurthy)
Chief General Manager-in- Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/265 · issued 22 Feb 2007. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3288&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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