NBFC Prudential Norms Directions 2007 Updated as on June 30, 2013
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/34 · issued 01 Jul 2013 · ~2 min read
Quick answerRBI issued an updated consolidated version of the NBFC Prudential Norms Directions, 2007, incorporating all amendments up to June 30, 2013. This circular replaces the earlier 1998 directions and applies to deposit-accepting NBFCs and residuary non-banking companies.
What changed
RBI consolidated all amendments to the 2007 Prudential Norms Directions into a single updated notification as of June 30, 2013. The earlier 1998 Prudential Norms Directions stand superseded. The updated text is now available on the RBI website for easy reference.
What it means for you
NBFCs accepting or holding public deposits must comply with the updated 2007 Directions, which cover income recognition, asset classification, provisioning, capital adequacy, and exposure norms. This consolidation reduces ambiguity and ensures all current instructions are in one place, aiding compliance and audit.
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
Review the updated 2007 Directions notification and ensure your NBFC's policies align with all provisions, especially asset classification and provisioning requirements.
Update internal compliance manuals and training materials to reflect the consolidated directions as of June 30, 2013.
Submit the required statutory auditor certificate and half-yearly returns as per the updated norms.
Ensure the audit committee is constituted as per the directions and reviews compliance periodically.
Who it affects
All Non-Banking Financial Companies (NBFCs) accepting or holding public deposits, Residuary Non-Banking Companies (RNBCs), Statutory auditors of these NBFCs, RBI's Department of Non-Banking Supervision
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular apply to all NBFCs?
No, it applies only to NBFCs that accept or hold public deposits and to residuary non-banking companies. Government companies as defined under Section 617 of the Companies Act, 1956 are exempt.
What is the effective date of these directions?
The directions came into force with immediate effect from February 22, 2007, and this circular updates them as on June 30, 2013.
What are the key areas covered in the updated directions?
The directions cover income recognition, asset classification, provisioning, capital adequacy, exposure norms, disclosure requirements, audit committee constitution, and submission of returns.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/34
DNBS (PD) CC No.332/03.02.001/ 2013-14
July 1, 2013
To
The Chairman / CEOs of all Non-Banking Financial (Deposit Accepting or Holding) Companies and Residuary Non-Banking Companies
Dear Sirs,
Notification as amended upto June 30, 2013 – “Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007”
As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated circulars / notifications . The instructions contained in the Notification No. DNBS. 192 / DG (VL)-2007 dated February 22, 2007 updated as on June 30, 2013 are reproduced below. The updated notification has also been placed on the RBI web-site ( http://www.rbi.org.in ).
Yours faithfully,
(N. S. Vishwanathan)
Principal Chief General Manager
Table of Contents
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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/34 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=8151&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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