Reserve Bank of India (Non-Banking Financial Companies - Auditor’s Report) Directions, 2026
UR
- Applies toFinance companies
- StatusIn force
- IssuedJul 31, 2026
- Amendmentsnone tracked
- Length40 points in 3 sections · 4 min read
The four dates on this rule
- PublishedJul 31, 2026The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyJul 31, 2026The 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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What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Can be read two ways
A point marked this way sits on an RBI paragraph that can honestly be read two ways. Our own sentence takes one of the two. BankPulse does not choose for you: read RBI’s own paragraph, at the number printed on the point, before you act on it.
Two ways — both, or either one. RBI’s paragraph joins two things in the and-or form. One reading: Both of them apply, together. The other: Either one of them, on its own, is enough.
Chapter I. Preliminary
1. Starts the day issued
These rules start the moment RBI issues them.
2. Covers section 45-I(f) companies
It applies to the auditor of any company that counts as an NBFC under RBI's own Act.
3. Their own book for HFCs
A housing finance company's own auditor still follows RBI's separate housing finance company rules.
Chapter II. Auditors to submit Additional Report to the Board of Directors
Must know
1. One more report to board
The auditor writes a separate report to the board, apart from the usual company-law report.
2. Checks the licence itself
The auditor checks whether the company holds RBI's certificate of registration.
3. Checks it can keep licence
The auditor checks if the company still meets RBI's test to keep that certificate.
4. Checks its minimum capital
The auditor checks whether the company meets RBI's minimum net owned fund rule.
5. Auditor confirms licence is needed
The statutory auditor confirms the company needs a certificate of registration and may hold one.
6. Deposits stay inside RBI's limit
The auditor checks whether its public deposits and listed borrowings stay within RBI's allowed limit.
7. Extra deposits get fixed
Deposits held above the allowed amount are set right the way RBI's rules require.
8. No deposits without a rating
It may not take public deposits without a minimum credit rating from an approved agency.
9. Rating checked every scheme
The auditor checks that a SEBI-registered agency rated each deposit scheme.
10. Deposits inside RBI's ceiling
It checks whether outstanding deposits crossed RBI's specified ceiling at any point in the year.
11. No broken deposit rules
The auditor checks whether the company broke any rule on taking public deposits.
12. No missed payments to depositors
It checks whether the company failed to pay a depositor's interest or principal on time.
13. Capital ratio, correctly worked out
The auditor checks that its capital ratio is worked out correctly and meets RBI's minimum.
14. Bad-loan rules, followed
It checks the company followed RBI's rules on recognising and providing for bad loans.
15. Liquid assets, kept and reported
The auditor checks its liquid-asset holding and confirms where those assets are held.
16. New branches follow the rules
Opening a branch, closing one, or naming an agent all follow RBI's deposit rules.
17. Board resolves against deposits
The board passes its own resolution saying it will not take public deposits.
18. Deposits taken all the same
The auditor checks whether it took any public deposit anyway during the year.
19. Bad-loan rules apply here too
The same bad-loan and accounting rules are checked, even without deposits.
20. Bigger NBFCs get capital checked
A Middle-layer NBFC or above also gets its capital ratio checked against RBI's minimum.
21. Microfinance NBFCs, correctly classified
The auditor checks whether it is correctly classified as a microfinance NBFC.
22. No licence, conditions still checked
If RBI excused it from holding a certificate, the auditor checks it still meets RBI's conditions.
23. Reasons given for bad report
If the auditor's finding is unfavourable, the report states why.
24. Silence gets a reason too
If the auditor cannot give an opinion at all, the report says why.
Do it
25. SAC return, five days
It files that certificate within five working days, and by December 31 at the latest.
26. Certificate filed on RBI's portal
That certificate is filed on RBI's own CIMS portal.
27. Deposit return filed on time
It checks that a return on deposits reached RBI within the required time.
28. Prudential return filed too
It also checks that a second return on prudential limits reached RBI on time.
Background
29. Extra checks for deposit-takers
A company that takes public deposits gets extra checks, on top of the ones every NBFC gets.
Chapter III. Auditors to submit Exception Report to RBI
1. RBI gets an exception report
A bad finding or a rule break goes to RBI directly, as its own report.
2. That report names contraventions only
That report names rule breaks only, and never a statement that it is complying.
3. Sent to local RBI office
That exception report goes to RBI's office for the area where its registered office sits.
Chapter IV. Repeal and Other Provisions
1. RBI's own reading is final
If a doubt comes up, RBI's own reading of these Directions is final.
2. Old rules stay repealed
The rules this replaces, and anything already withdrawn under them, stay withdrawn.
3. Old approvals still count
An approval granted under the old rules still counts under this one.
4. Old penalties still apply
A penalty already earned under the old rules is not wiped out.
5. Other laws still apply
These Directions add to other laws and rules, and do not replace them.
Other RBI rules for NBFCs
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