Source: Reserve Bank of India · RBI/2024-25/24 · issued 24 Apr 2024 · ~1 min read
Quick answerRBI issued a revised Master Circular consolidating all instructions on bank finance to NBFCs as of April 23, 2024. No new guidelines are introduced; it replaces the April 2023 circular for all Scheduled Commercial Banks except RRBs.
What changed
The revised Master Circular updates the previous one from April 3, 2023, by incorporating all instructions issued up to April 23, 2024. It does not introduce any new guidelines but serves as a consolidated reference for existing regulations.
What it means for you
Banks must now refer to this updated circular for compliance with NBFC financing norms, including prudential ceilings and risk weights. The withdrawal of the NOF-linked ceiling for registered NBFCs continues, allowing need-based credit. No operational changes are required, but banks should ensure their policies align with the consolidated instructions.
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 revised Master Circular and update internal policies to reflect the consolidated instructions.
Ensure all NBFC financing activities comply with the updated prudential ceilings and restrictions.
Train credit and risk teams on the consolidated guidelines to avoid non-compliance.
Replace references to the April 2023 circular with this new version in all documentation.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Credit departments handling NBFC exposures, Risk management teams at banks
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular introduce any new restrictions on bank finance to NBFCs?
No, it only consolidates existing instructions issued up to April 23, 2024, without adding new guidelines.
Which banks are covered under this Master Circular?
All Scheduled Commercial Banks except Regional Rural Banks (RRBs) must comply with these guidelines.
What is the key change from the previous Master Circular?
The circular updates the reference date to include instructions up to April 23, 2024, but no substantive changes were made to the regulatory framework.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to our Master Circular DOR.CRE.REC.No.17/21.04.172/2024-25 dated April 24, 2024”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #118: DOR.CRE.REC.No.17/21.04.172/2024-25 — "Master Circular - Bank Finance to Non-Banking Financial Companies (NBFCs)" dated April 24, 2024”
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/24
DOR.CRE.REC.No.17/21.04.172/2024-25
April 24, 2024
All Scheduled Commercial Banks (excluding RRBs)
Madam/ Dear Sir,
Master Circular - Bank Finance to Non-Banking Financial Companies (NBFCs)
Please refer to our Master Circular DOR.CRE.REC.No.07/21.04.172/2023-24 dated April 03, 2023 on the captioned subject. Attached is the revised Master Circular, updated to reflect all instructions issued as on date on the above matter, as listed in the Appendix . It may be noted that this Master Circular only consolidates all instructions on the above matter issued up to April 23, 2024 and does not contain any new instructions/guidelines.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager
Encl: as above.
Master Circular on Bank Finance to Non-Banking Financial Companies (NBFCs)
Purpose
To lay down the Reserve Bank of India's regulatory policy regarding financing of NBFCs by banks.
Classification
A statutory guideline issued under Section 35A of Banking Regulation Act, 1949.
Previous guidelines
Master Circular DOR.CRE.REC.No.07/21.04.172/2023-24 dated April 03, 2023 on ‘Bank Finance to Non-Banking Financial Companies (NBFCs).
Application
To all Scheduled Commercial Banks (excluding Regional Rural Banks).
Structure
1.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/24 · issued 24 Apr 2024. 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=12670&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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