Home › Circulars › RBI/2021-22/175

NBFCs with 10+ branches must adopt Core Financial Services Solution by Sept 2025

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2021-22/175 · issued 23 Feb 2022 · ~2 min read

Quick answerRBI mandates NBFC-ML and NBFC-UL with 10 or more fixed-point service delivery units to implement a Core Financial Services Solution (CFSS) akin to banks' CBS by September 30, 2025. Upper Layer NBFCs must cover 70% of units by September 30, 2024. Quarterly progress reports start from March 2023.

The rule, in the simplest words

NBFCs with 10+ branches must adopt Core Financial Services Solution (CFSS) by Sept 2025
Upper Layer NBFCs must cover 70% of units with CFSS by Sept 2024
NBFCs must identify and count fixed-point service delivery units as of Oct 1, 2022

How it plays out — a real example

As an NBFC compliance officer in Indore, I must ensure that our NBFC-UL with 10+ fixed-point service delivery units implements CFSS by September 2025. I will work with our IT team to identify and count all our fixed-point service delivery units as of October 1, 2022, and then initiate the procurement or upgrade of a CFSS platform to meet the deadline. This will enable us to provide seamless customer interface and integrate our functions, making it easier for our customers to access our services.

What changed

RBI has made CFSS mandatory for NBFC-Middle Layer and NBFC-Upper Layer entities that have 10 or more fixed-point service delivery units as of October 1, 2022. The deadline for full implementation is September 30, 2025, with an interim milestone for Upper Layer NBFCs to cover 70% of units by September 30, 2024. Base Layer NBFCs and those with fewer than 10 units are exempt but encouraged to adopt CFSS voluntarily.

What it means for you

NBFCs in the Middle and Upper Layers with a significant physical presence must now invest in a centralized digital platform that integrates customer interface, accounting, and MIS. This aligns them with banking standards and enhances regulatory reporting capabilities. The staggered timeline gives Upper Layer NBFCs a tighter deadline, reflecting their systemic importance.

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 all fixed-point service delivery units as per RBI's definition (excluding admin/back offices) and count them as of October 1, 2022.
If your NBFC is Middle or Upper Layer with 10+ such units, initiate procurement or upgrade of a CFSS platform immediately to meet the September 2025 deadline.
For NBFC-UL, prioritize CFSS rollout to cover at least 70% of units by September 30, 2024.
Set up a board-approved project plan with milestones and start submitting quarterly progress reports to your Senior Supervisory Manager from the quarter ending March 31, 2023.

Who it affects

NBFC-Middle Layer with 10 or more fixed-point service delivery units, NBFC-Upper Layer with 10 or more fixed-point service delivery units, NBFC-Base Layer (voluntary adoption), NBFCs with fewer than 10 fixed-point service delivery units (voluntary adoption)

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 06:49 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 11 Jul 2026, 02:13 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What qualifies as a 'fixed-point service delivery unit'?

It is a place where the NBFC conducts non-banking financial intermediation, manned by own staff or outsourced agents, with uniform signage and under administrative control. Administrative offices and back offices without direct customer interface are excluded.

What is the penalty for not meeting the September 2025 deadline?

The circular does not specify penalties, but non-compliance may invite supervisory action under Sections 45L and 45M of the RBI Act, 1934. Banks should advise NBFC clients to adhere strictly.

Can NBFC-Base Layer voluntarily adopt CFSS?

Yes, the circular encourages all NBFCs, including Base Layer and those with fewer than 10 units, to consider implementing CFSS for their own benefit, though it is not mandatory for them.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #21: DoS.CO.PPG.SEC/10/11.01.005/2021-22 — "Implementation of 'Core Financial Services Solution' by Non-Banking Financial Companies (NBFCs)" dated February 23, 2022”

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 746 kb ) Implementation of ‘Core Financial Services Solution’ by Non-Banking Financial Companies (NBFCs) RBI/2021-22/175 DoS.CO.PPG.SEC/10/11.01.005/2021-22 February 23, 2022 All Non-Banking Financial Companies Madam / Dear Sir, Implementation of ‘Core Financial Services Solution’ by Non-Banking Financial Companies (NBFCs) A reference is invited to para 3.2.3 (j) of the Reserve Bank’s Circular Ref. DOR.CRE.REC.No.60/03.10.001/2021-22 dated October 22, 2021 on ‘Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs’ in terms of which NBFCs with 10 and more branches are mandated to adopt Core Banking Solution. 2. Accordingly, it has been decided that NBFCs – Middle Layer and NBFCs - Upper Layer with 10 and more ’Fixed point service delivery units’ 1 as on October 1, 2022 shall be mandatorily required to implement ‘Core Financial Services Solution (CFSS)’, akin to the Core Banking Solution (CBS) adopted by banks. The CFSS shall provide for seamless customer interface in digital offerings and transactions relating to products and services with anywhere / anytime facility, enable integration of NBFCs’ functions, provide centralised database and accounting records, and be able to generate suitable MIS, both for internal purposes and regulatory reporting. 3. The timeframe for implementation of the requirement as indicated in Para 2 above shall be as under: Category of NBFC Timeframe for implementation NBFC – Middle and Upper Layers with 10 or more ‘Fixed point service delivery units’ On or before September 30, 2025 However, NBFC-UL shall ensure that the CFSS is implemented at least in 70 per cent of ‘Fixed point service delivery units’ on or before September 30, 2024. NBFC – Base Layer and NBFC – Middle and Upper Layers with fewer than 10 ’Fixed point service delivery units’ Not mandatory. However, they may consider implementation of a Core Financial Services Solution for their own benefit. 4. A quarterly progress report on implementation of the Core Financial Services Solution, along with various milestones as approved by the Board / Committee of the Board, shall be furnished by the NBFC to the Senior Supervisory Manager (SSM) Office of Reserve Bank starting from quarter ending March 31, 2023. 5. This circular is issued under Sections 45L and 45M of Reserve Bank of India Act,1934. Yours faithfully, (Arnab Kumar Chowdhury) Chief General Manager 1 For the purpose of this Circular, a ‘Fixed point service delivery unit’ is a place of operation from where the business activity of non-banking financial intermediation is carried out by the NBFC and which is manned either by its own staff or outsourced agents. It carries uniform signage with name of the NBFC and functions under administrative control of the NBFC. Administrative Offices and Back Offices which do not have any direct interface with customers should not be treated as a ‘Fixed point service delivery unit’. 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/175 · issued 23 Feb 2022. 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=12247&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.