Reserve Bank of India (Non-Banking Financial Companies – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025 (Updated as on July 01, 2026)
UR
- Applies toFinance companies
- StatusIn force
- IssuedNov 28, 2025
- Amendmentsnone tracked
- Length29 points in 5 sections · 3 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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Chapter I. Preliminary
1. Investment rules for NBFCs
This paper sets how non-banking financial companies must class and value what they hold.
2. Start date
These Directions came into effect on the day RBI issued them.
3. Who is covered
These Directions apply to every non-banking financial company.
4. Carrying cost defined
Carrying cost is the book value of the asset plus interest earned but not received.
5. Current investment means a year
A current investment is one easily sold and meant to be held for a year or less.
Chapter II. Regulations applicable for NBFC-BL
Must know
1. No ad-hoc transfer
A move between classes may not be made on an ad-hoc basis.
2. No setting one off another
A fall in one scrip may not be set off against a rise in another on transfer.
3. No setting group off group
A fall in one group may not be set off against a rise in another.
4. One rupee if no accounts
Where the investee's balance sheet is missing for two years, the share is valued at ₹1.
BankPulse example. A finance company holds shares in a company that has not filed its balance sheet for two years. Those shares are valued at 1 rupee only, whatever was paid for them.
Do it
5. Board frames the policy
The Board must frame the investment policy and put it into practice.
6. Trade through a gilt account
Government securities must be dealt through a gilt or demat account RBI allows.
7. Fifteen minutes to report
An over the counter corporate bond trade must be reported within fifteen minutes.
8. Net fall must be provided
Where a group's market value is below its cost, the net fall is charged to profit.
Background
9. Transfer at the lower value
A move between classes is made scrip by scrip at book or market value, whichever is lower.
10. Six groups for valuing
Quoted current investments are grouped into six kinds before they are valued.
11. Lower of cost or market
Each group of quoted current investments is valued at cost or market, whichever is lower.
12. Scrip by scrip, then add
Within a group each scrip is taken on its own and the totals then added.
13. Unquoted shares at the lower
An unquoted equity share is valued at cost or break-up value, whichever is lower.
14. Unquoted preference at the lower
An unquoted preference share is valued at cost or face value, whichever is lower.
15. Government paper at carrying cost
Unquoted government or guaranteed paper is valued at carrying cost.
16. Mutual fund at NAV
An unquoted mutual fund unit is valued at the scheme's declared net asset value.
17. Long-term follows the standard
A long-term holding is valued as the accounting standards require.
18. Unquoted debenture is a loan
An unquoted debenture is treated as a term loan or other credit for grading.
19. Dividend on cash basis
Dividend income on shares and mutual fund units is taken on a cash basis.
20. Unless it is declared
Dividend may be taken on accrual once declared at the annual general meeting.
21. Bond interest on accrual
Interest on corporate bonds and government paper is taken on an accrual basis.
22. Only if serviced on time
That accrual holds only where the rate is fixed and interest is not in arrears.
Chapter IV. Repeal and Other Provisions
1. Older rules repealed
This document repeals RBI's earlier instructions on how non-banking financial companies classify, value and operate their investment portfolio.
2. Old actions preserved
Actions already taken under the old rules still follow those old rules.
The same subject for other kinds of institution
The same subject for other kinds of institution.
Other RBI rules for NBFCs
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