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NBFC Regulations

Every RBI rule that touches NBFC Regulations, simplified for bankers. 63 current circulars.

63
current circulars shown below
64
withdrawn / superseded — moved to archive

Status from our nightly regulatory-lineage check. Only circulars with no recorded withdrawal appear below — always confirm current applicability against the official RBI source linked on each circular.

OverviewNon-Banking Financial Companies are regulated through a scale-based framework that sorts NBFCs into base, middle, upper and top layers, with capital, governance and disclosure obligations rising with size and systemic importance. The rulebook spans prudential norms, liquidity coverage, large-exposure limits, IPO-financing caps, NPA recognition, and fair-practices and digital-lending conduct.
Key dataSee the numbers behind NBFC Regulations: NPA / Asset-Quality Tracker — gross & net NPA / asset-quality trends, updated from official RBI data. Related live data: Bank Health Scores.
Key termsPlain-English definitions of the terms on this page — see the full Indian banking glossary. NBFC · CRAR (Capital adequacy) · Gross NPA (GNPA) · Wilful defaulter · Expected Credit Loss (ECL) · CRILC · Scale-Based Regulation (NBFC SBR)
Part of clusterThis topic is part of the NBFC & Co-operative Banking cluster — explore related rules, FAQs and live data across the theme.

Latest circulars in this cluster

Bank Credit Growth Surges to 18.3% in June 2026

Non-food bank credit grew 18.3% y-o-y in June 2026, up from 9.3% a year ago. Industry and services led the surge, while

· 17 hours ago · 63267

RBI Consolidates Supervisory Directions into 64 Master Directions

RBI has consolidated 628 supervisory circulars into 64 Master Directions across 11 regulated entities, effective July 31

· 18 hours ago · 63265

Non-Food Bank Credit Growth at 17.4% as of May 31, 2026

Non-food bank credit grew 17.4% YoY as of May 31, 2026, up from 8.8% a year ago. Industry and services led the surge, wi

· 4 weeks ago · 63052

Revised Application Form for Voluntary Surrender of NBFC CoR

RBI has revised the application form and checklist for NBFCs (including HFCs) voluntarily surrendering their Certificate

· 4 weeks ago · 63053

FSR June 2026: Indian Financial System Resilient Amid Global Risks

India's financial system remains resilient per the June 2026 FSR, with strong bank and NBFC balance sheets, improved ass

· 4 weeks ago · 63050

Annual NBS-7 Return Mandate for NBFC-ND-SI

Systemically Important NBFCs (assets size of Rs 100 crore and above) must file an annual statement of capital funds and

· 3 days ago · 0

UAPA Section 51A: UNSC Sanctions List Updated – One Entry Amended

RBI directs all regulated entities to update their records per UNSC's July 8, 2026 amendment to the ISIL/Al-Qaida sancti

· 5 days ago · 0

NBFC Income Recognition on Acquired Assets: New RBI Rules

RBI bars NBFCs from booking past unpaid interest on acquired specified non-financial assets as income. Such income must

· 5 days ago · 0

NBFC-UL Governance Exemption for Government-Owned Entities

RBI exempts fully government-owned and controlled NBFCs in the Upper Layer from provisions after paragraph 43 of the Nov

· 5 days ago · 0

RBI Finalises Master Direction – Credit Derivatives Directions, 2026

RBI has issued final Master Directions on Credit Derivatives, effective June 25, 2026, covering OTC and exchange-traded

· 1 month ago · 0

RBI Drafts Model Risk Management Guidance for All Regulated Entities

RBI released draft guidance on model risk management, covering all models including AI/ML and third-party ones. It appli

· 1 month ago · 63006

RBI Tightens Agency and Referral Rules for Small Finance Banks

RBI has amended the Small Finance Banks (Undertaking of Financial Services) Directions, 2025, effective January 1, 2027.

· 1 month ago · 0

RBI Cracks Down on Excessive NBFC Interest Rates

RBI warns NBFCs against charging excessive interest or fees, urging boards to set internal rate-setting policies aligned

· 1 month ago · 0

NBFCs Must Report OTC Corporate Bond Trades on FIMMDA Platform

From September 1, 2007, all NBFCs must report their secondary market OTC corporate bond trades on FIMMDA's reporting pla

· 1 month ago · 0

NBFCs Must Hand Over Full Loan Agreement Copies

RBI mandates NBFCs to provide borrowers with a copy of the loan agreement and all enclosures at sanction/disbursement. T

· 1 month ago · 0

NBFCs Must Comply with National Do Not Call Registry Rules

RBI mandates NBFCs to ensure their telemarketers (DSAs/DMAs) are registered with DoT under the NDNC framework. NBFCs mus

· 1 month ago · 0

RBI clarifies DTA/DTL treatment for NBFC capital adequacy

RBI directs NBFCs to deduct deferred tax assets (DTA) from Tier I capital and exclude deferred tax liabilities (DTL) fro

· 1 month ago · 0

Half-Yearly FDI Compliance Certificate for NBFCs

NBFCs with FDI must submit a half-yearly certificate from their Statutory Auditors confirming compliance with minimum ca

· 1 month ago · 0

RBI Creates New NBFC Category: Infrastructure Finance Companies

RBI has introduced a fourth NBFC category—Infrastructure Finance Companies (IFCs)—for non-deposit-taking NBFCs with at l

· 1 month ago · 0

NBFCs must get RBI NoC before overseas investments

RBI mandates all NBFCs to obtain a 'No Objection' certificate from the Department of Non-Banking Supervision before maki

· 1 month ago · 0

NBFCs barred from anonymous client accounts via intermediaries

RBI has tightened KYC/AML norms for NBFCs: professional intermediaries (lawyers, CAs) bound by client confidentiality ca

· 1 month ago · 0

NBFCs: Bullion Dealers & Jewelers Now High-Risk KYC Accounts

RBI mandates NBFCs to classify bullion dealers and jewelers as high-risk customers, requiring enhanced due diligence and

· 1 month ago · 0

NBFC Auditor's Report Directions 2008 (Updated as on June 30, 2011)

RBI consolidated the 2008 NBFC Auditor's Report Directions as updated on June 30, 2011. Auditors must submit an addition

· 1 month ago · 0

NBFC Prudential Norms 2007 Updated as on June 30, 2011

RBI consolidated all prudential norms for deposit-taking NBFCs and RNBCs into one updated notification as of June 30, 20

· 1 month ago · 0

RBI Master Circular on NBFC Fraud Monitoring (2012)

RBI consolidated fraud reporting norms for deposit-taking NBFCs and large NBFCs-ND-SI (asset size ≥₹100 crore). Mandates

· 1 month ago · 0

RBI extends UCIC deadline for NBFCs to March 2014

RBI has extended the deadline for NBFCs to assign a Unique Customer Identification Code (UCIC) to existing individual cu

· 1 month ago · 0

NBFCs must use only TRAI-registered telemarketers

RBI reiterates that NBFCs and RNBCs must engage only telemarketers registered with TRAI for promotional calls, following

· 1 month ago · 0

NBFC-MFI Pricing of Credit: New Interest Rate Cap

RBI caps NBFC-MFI lending rates at the lower of cost-plus-margin or 2.75 times the average base rate of the five largest

· 1 month ago · 0

NBFCs must round off all transactions to nearest rupee

RBI mandates NBFCs to round off all transactions, including interest payments and charges, to the nearest rupee. Fractio

· 1 month ago · 0

RBI Revamps HFC Regulatory Framework: Key Changes

RBI has issued a revised regulatory framework for Housing Finance Companies (HFCs), effective October 22, 2020. Key chan

· 1 month ago · 0

RBI's New Dividend Rules for NBFCs: Key Guidelines

RBI has issued a circular prescribing uniform dividend distribution guidelines for all NBFCs, effective for dividends fr

· 1 month ago · 0

Large Exposures Framework for NBFC-UL

RBI has issued a Large Exposures Framework for NBFCs in the Upper Layer, defining exposure limits, grouping of connected

· 1 month ago · 0

SBR: NBFC-UL CET1 Capital Requirements

NBFCs in the Upper Layer must now maintain a Common Equity Tier 1 (CET1) ratio of at least 9% of Risk Weighted Assets, w

· 1 month ago · 0

NBFC Lending Restrictions: SBR Guidelines Effective Oct 2022

RBI has issued detailed lending restrictions for NBFCs under the Scale Based Regulation framework, effective October 1,

· 1 month ago · 0

NBFC KMP & Senior Management Compensation Guidelines

RBI issued final guidelines on compensation for NBFC KMPs and senior management, effective April 1, 2023. These apply to

· 1 month ago · 0

RBI mandates differential standard asset provisioning for NBFC-UL

NBFCs in the Upper Layer must now hold graded provisions on standard assets: 0.25% for home loans and SME loans, 2% for

· 1 month ago · 0

NBFC Regulations Update

RBI updates regulations for non-banking financial companies

· 1 month ago · 0

RBI's New P2P Lending Rules: NBFC-P2P Directions 2025

RBI issued comprehensive NBFC-P2P Lending Platform Directions 2025, effective the day they are placed on the RBI website

· 1 month ago · 0

RBI Issues Reserve Bank of India (Non-Banking Financial Companies – Microfinance Institution) Directions, 2025

RBI issues the Reserve Bank of India (Non-Banking Financial Companies – Microfinance Institution) Directions, 2025, cove

· 1 month ago · 0

RBI Tightens NBFC Credit Reporting Timelines and CKYC Norms

RBI has amended NBFC credit information reporting directions, effective July 1, 2026. Key changes: weekly data submissio

· 1 month ago · 0

RBI eases concentration norms for high-quality infra projects

RBI has amended concentration risk directions for NBFCs, allowing certain infrastructure loans to be classified as 'high

· 1 month ago · 0

NBFC Capital Adequacy: New Risk Weights for High-Quality Infrastructure Loans

RBI has amended NBFC capital adequacy norms, introducing lower risk weights (75% and 50%) for loans to high-quality infr

· 1 month ago · 0

NBFC Credit Risk Management: Related Party Lending Rules Tightened (Amendment Directions, 2026)

RBI has amended NBFC Credit Risk Management Directions, 2025 via Amendment Directions, 2026, introducing stricter defini

· 1 month ago · 0

NBFC Capital Adequacy: Revised Treatment of Quarterly Profits

The RBI has amended the NBFC capital adequacy directions to clarify that free reserves now include quarterly profits, pr

· 1 month ago · 0

RBI Allows DLG in ECL Provisioning for NBFCs

RBI now permits NBFCs to factor Default Loss Guarantee (DLG) into Expected Credit Loss (ECL) provisions for digital lend

· 1 month ago · 0

RBI Amends NBFC Credit Facilities Directions, 2026

RBI has amended the NBFC Credit Facilities Directions to align asset classification and provisioning requirements with t

· 1 month ago · 0

RBI Amends Concentration Risk Management Directions for NBFCs (Second Amendment, 2026)

RBI amends concentration risk management directions for NBFCs to review Tier 1 capital definition and introduce external

· 1 month ago · 0

NBFC Branch Authorisation Amendment 2026: Operational Flexibility

RBI has amended NBFC Branch Authorisation Directions 2025 to provide operational flexibility. Most NBFCs can now open br

· 1 month ago · 0

NBFC Directions Amended: AgriSURE Fund Added to Annex I

RBI has added 'AgriSURE - Agri Fund for Start Ups & Rural Enterprises' to Annex I of the NBFC (Undertaking of Financial

· 1 month ago · 0

NBFC Stressed Asset Resolution: New IRAC Norms & Provisions

RBI amends NBFC IRAC norms to align with stressed asset resolution directions. Standard accounts under a valid resolutio

· 1 month ago · 0

RBI Amends NBFC Registration, Exemptions, and Scale-Based Regulation

RBI issues Amendment Directions for NBFCs, introducing new definitions and exemptions for NBFCs not availing public fund

· 1 month ago · 0

RBI Amends Rules on Financial Ads

RBI issues amendment directions on advertising and sale of financial products by regulated entities, effective January 1

· 1 month ago · 62938

RBI Updates NBFC Rules

RBI issues new directions for NBFCs on responsible business conduct, covering advertising and customer interactions.

· 1 month ago · 0

NBFC Capital Adequacy Update

RBI has revised NBFC capital adequacy rules, allowing a zero risk weight for up to 75 % of the guaranteed portion of exp

· 1 month ago · 0

RBI Amends NBFC Directions

RBI amends NBFC directions to revise agency business regulations and customer service aspects.

· 1 month ago · 0

NBFC Income Recognition on Acquired Assets: New RBI Rules

RBI now bars NBFCs from booking accrued interest on extinguished loans after acquiring specified non-financial assets (S

· 2 weeks ago · 0

RBI finalises prudential norms for specified non-financial assets

RBI has issued final prudential norms for Specified Non-Financial Assets (SNFA) acquired by regulated entities, incorpor

· 2 weeks ago · 63165

MHA designates 23 individuals as terrorists under UAPA

MHA has added 23 individuals to the Fourth Schedule of UAPA, 1967. Banks and NBFCs must report any matching accounts to

· 2 weeks ago · 0

May 2026 NBFC Credit Deployment Snapshot

In May 2026, NBFCs expanded credit by 14.2% year‑on‑year, outpacing the 11.4% growth seen a year earlier. Agriculture cr

· 3 weeks ago · 63099

RBI Amends Directions on Agency Business and Referral Services

RBI amends directions on agency business and referral services for commercial banks, effective January 1, 2027.

· 3 weeks ago · 0

RBI Directions on NBFC Acquisition of Shareholding or Control

RBI issues directions for NBFCs to obtain prior approval for acquisition of shareholding or control, with certain exempt

· 3 weeks ago · 0

RBI Directions on Climate Finance for NBFCs

RBI issues directions for NBFCs to manage climate change risks and promote green finance, including guidelines for green

· 3 weeks ago · 0

RBI Directions for NBFC Internal Ombudsman

RBI issues directions for NBFCs to strengthen internal grievance redress mechanism and ensure speedy resolution of custo

· 3 weeks ago · 0

Frequently asked questions

What is the scale-based regulation for NBFCs?

It is a four-layer structure — base, middle, upper and top — where regulatory intensity scales with the NBFC's size, activity and interconnectedness. Upper-layer NBFCs face bank-like requirements on capital, governance and disclosure.

How do NBFC NPA norms compare with banks?

RBI aligned NBFC asset-classification and income-recognition norms more closely with banks, including the treatment of upgrades only after all arrears are cleared. The specific direction is tracked in the cluster below.

Are NBFCs subject to the same conduct rules as banks?

Many fair-practices, digital-lending and grievance-redress principles apply across both, but capital and structural rules differ by layer. Always read the NBFC-specific entry.

Related topics & data

NBFC Regulation

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