Reserve Bank of India (Non-Banking Financial Companies – Miscellaneous) Supervisory Directions, 2026

1. One supervisory rulebook

This book holds RBI's mixed supervisory rules for non-banking financial companies in one place.

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.

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.

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.

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.

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.

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.

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.