Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025 (Updated as on April 15, 2026)
UR
- Applies toFinance companies
- StatusIn force
- IssuedNov 28, 2025
- Last amendedApr 15, 2026 · 1 incorporated
- Length16 points in 4 sections · 2 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.
This rulebook is short, and the page is short with it. The whole direction is about 1,350 words long; these points cover every operative rule in it.
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What it says
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Two ways — firm, or the usual course. RBI’s paragraph softens the duty with a hedging word instead of stating it flat. One reading: It is a firm rule, and only a rare case RBI would accept sits outside it. The other: It is the usual course, and a bank may depart from it for its own recorded reasons.
Chapter I. Preliminary
1. In force at once
These directions came into force with immediate effect.
2. Who is covered
These Directions apply to finance companies of all layers, with named paragraphs for each kind of company.
3. Some kinds excluded
Five kinds are out, from mortgage guarantee companies to peer to peer platforms and holding companies.
Chapter II. Branch Authorisation
Must know
1. Others: no prior approval
Other finance companies may generally open branches without RBI's prior approval unless specifically restricted.
2. Deposit-takers: small stays home
A deposit-taking company with owned funds up to ₹ 50 crore, or rated below AA, keeps branches within its state.
BankPulse example. A deposit-taking finance company has owned funds of 40 crore rupees. That is up to 50 crore, so it may open branches only within its own state.
3. Big goes national
A deposit-taking company with owned funds above ₹ 50 crore and rated AA or better may branch anywhere in India.
4. Both tests must pass
A deposit-taking company above ₹ 50 crore but rated below AA still stays within its own state.
5. Three months of notice
Closing any branch needs at least three months public notice in a national paper and a local language paper.
6. RBI told within a week
A deposit taking company sends the closure notice to RBI's office within seven days of printing it.
Background
7. Branches without asking
A finance company may generally open branches in India without RBI's prior approval.
8. No new branches abroad
As a rule, no new branch may open abroad. Ones already set up may carry on under conditions.
9. Liaison offices need leave
A representative office abroad needs RBI's prior approval, sought through the PRAVAAH portal.
10. Liaison only, no lending
Such offices do liaison work and market study only; no activity that puts out funds, and no line of credit.
11. Idle offices lose approval
The parent company takes regular reports. An office doing nothing, or not reporting, can lose its approval.
Chapter III. Repeal and other Provisions
1. Old guidance repealed
The old branch opening guidance for finance companies stands repealed.
2. Old actions stay governed
Action already taken under the old rules stays governed by them.
How this rule has changed
The points above are the rule as it stands today, after every change listed here.
Issued on Nov 28, 2025. This is the date RBI put the rule out.
Changed on Apr 15, 2026.
- who directions cover. These rules now cover all layers of the listed non-banking financial companies and housing finance companies.
- heading change a1. Subsection A1 heading is now named opening of branch in India.
- general branch rule. A non-banking financial company can usually open branches without prior Reserve Bank of India approval unless specifically restricted.
- delete subsections a2 a3. Subsections A2 and A3 and paragraphs 7, 8 and 9 are removed from the directions.
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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