What changed
RBI has issued a single comprehensive direction for NBFCs, structured by NBFC layers (Base, Middle, etc.) with specific chapters for each category, including NBFC-Factors, IDF-NBFCs, HFCs, MGCs, SPDs, P2P platforms, Account Aggregators, and CICs. The title indicates it is updated as of February 26, 2026.
What it means for you
NBFCs must comply with the applicable chapters of these directions based on their layer and registration type. Banks are not directly addressed in the source.
What you must do
- Review the full directions document to identify which chapters apply to each NBFC counterparty in your portfolio (if applicable).
- Update your credit risk assessment frameworks to incorporate compliance with these consolidated directions as a key criterion (if applicable).
- Ensure your NBFC subsidiaries or investee companies align their policies with the relevant chapters (II, III, IV, etc.) based on their layer and registration type (if applicable).
- Train relationship managers and credit teams on the layer-wise applicability and key provisions of the directions (if applicable).
Who it affects
NBFCs in Base Layer, Middle Layer, and above, NBFC-Factors, IDF-NBFCs, HFCs, MGCs, SPDs, NBFC-P2P, NBFC-AA, and CICs, NBFC-D, NBFC-ICC, NBFC-MFI, NBFC-IFC
Which NBFCs are covered under these directions?
All NBFC categories listed in the source are covered, including NBFC-BL, NBFC-ML, NBFC-D, NBFC-ICC, NBFC-Factor, NBFC-MFI, NBFC-IFC, IDF-NBFC, HFC, MGC, SPD, NBFC-P2P, NBFC-AA, and CIC. Applicability is layer-wise and chapter-specific as detailed in the directions. NOFHC is excluded.
When do these directions take effect?
The directions come into effect on the day they are placed on the RBI website, which is November 28, 2025 (the notification date). The updated version as of February 26, 2026, is noted in the title.
Do these directions apply to Housing Finance Companies (HFCs)?
Yes, specific paragraphs (6 to 22 and 24 to 27) of the directions apply to HFCs registered with RBI under the NHB Act, 1987, as mentioned in the applicability section.