Reserve Bank of India (Non-Banking Financial Companies – Miscellaneous) Supervisory Directions, 2026
UR
- Applies toFinance companies
- StatusIn force
- IssuedJul 31, 2026
- Amendmentsnone tracked
- Length26 points in 5 sections · 3 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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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.
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.
Opening paragraphs
1. One supervisory rulebook
This book holds RBI's mixed supervisory rules for non-banking financial companies in one place.
Chapter I. Preliminary
1. Start date
These rules took effect the day RBI issued them.
BankPulse example. There is no gap here between issue and effect. The Directions come into effect immediately upon issuance. A bank cannot wait for a separate start date, because there is none.
2. Every layer covered
These rules apply to non-banking financial companies in all layers that hold RBI registration.
3. Words from the Acts
Any other word takes its meaning from the RBI Act, the Banking Regulation Act or the Companies Act.
Chapter II. Implementation of Core Financial Services Solution
1. Core system at ten units
A company in the upper or middle layer with ten or more service points must run a Core Financial Services Solution.
2. Report progress each quarter
Progress on putting that system in place goes to RBI's Senior Supervisory Manager every quarter.
Chapter III. Fair Practices Code - Charging of Interest
1. Check how you charge
The firm must review how it pays out loans and charges interest, and fix what is unfair.
2. RBI calls this serious
Odd ways of charging interest are not fair or open, and RBI treats them as a serious matter.
3. Pay out by transfer
The firm may pay out a loan by online transfer instead of a cheque.
Chapter IV. Nomination Facility
1. Report cover each quarter
Progress on nomination cover goes to RBI through the DAKSH portal every quarter.
2. Ask every depositor
A deposit-taking company must obtain a nomination from every eligible customer holding a deposit account.
3. The board reviews cover
The board or its Customer Service Committee must review how far nomination cover has reached.
4. Train the front desk
Branch staff must be trained to take nominations and to handle the claims of a dead customer's family.
5. Tell the public
The firm must publicise the use of nomination through the media as well as telling depositors directly.
Chapter V. Prompt Corrective Action Framework
Must know
1. Bad loan trip wires
Net bad loans past 6, 9 and 12 per cent mark the three rising risk thresholds.
BankPulse example. A bank's net bad loans are 7 per cent. That is above 6 per cent and not above 9 per cent, so it sits in the first band. At 10 per cent it moves to the second, and above 12 per cent to the third.
Background
2. Why early action exists
The Prompt Corrective Action framework lets RBI step in early and makes a weak firm start fixing itself.
3. What is watched
Capital and asset quality are the areas tracked, with leverage added for a core investment company.
4. What puts a firm in
A firm goes under the framework on its audited yearly results or on RBI's own supervisory assessment.
5. What takes it out
Coming out of the framework is considered when the breaches stop.
6. Actions RBI may order
Once inside, one or more corrective actions may be ordered, some of them compulsory.
7. The discretionary list
The discretionary actions begin with special supervisory monitoring meetings held every quarter.
8. RBI may say so publicly
RBI may issue a press release when a firm is placed under the framework and when it is taken out.
Chapter VI. Repeal and Other Provisions
1. Old instructions repealed
The old rules on these matters were repealed by RBI's own circular.
BankPulse example. A compliance officer keeps an old circular on the same subject in the manual. It no longer applies. The existing directions, instructions and guidelines on these areas stand repealed. Only this rulebook governs them now.
2. Earlier action stands
What was done or begun under the old rules is still ruled by them.
BankPulse example. A show cause notice was issued under the old rules last year. The repeal does not move it. Any action taken or initiated under the repealed directions is still governed by them. The new rulebook applies to what comes after.
3. Adds to other law
These rules add to other laws in force. They take nothing away.
BankPulse example. A bank follows these Directions and thinks the matter is closed. It is not. Any other laws, rules, regulations or directions in force still apply on top. Where another one asks for more, the bank does the more.
4. RBI's reading is final
RBI may clear up doubts, and its reading of any clause is final.
The same subject for other kinds of institution
The same subject for other kinds of institution.
RBI miscellaneous supervisory rules for all India financial institutions
RBI miscellaneous supervisory rules for credit information companies
RBI miscellaneous supervisory rules for regional rural banks
RBI miscellaneous supervisory rules for rural co-operative banks
RBI miscellaneous supervisory rules for urban co-operative banks
Other RBI rules for NBFCs
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