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

the Department of Supervision of the Reserve Bank of India (“RBI”) has issued the RBI (Non-Banking Financial Companies – Cybersecurity, Technology: Risk, Resilience and Assurance Framework) Directions, 2026 (“Master Direction”) which has gained effect immediately.

Background:

RBI has issued a Press Release on Consolidated Supervisory Directions wherein it has consolidated 628 circulars and informed that:

1. 64 Master Directions have been consolidated on an ‘as is’ basis.

2. 628 Circulars (available at Circulars Withdrawn Notification – Reserve Bank of India) have been repealed / withdrawn, consequent to the issue of these consolidated Master Directions.

The direction is applicable to Non-Banking Financial Companies for all layers, holding registration under the Reserve Bank of India Act, 1934 or the Factoring Regulation Act, 2011 and Housing Finance Companies holding registration under the National Housing Bank Act, 1987

Key Highlights:

1. NBFCs in Upper and Middle Layers with 10 and more ‘fixed point service delivery units’ must implement ‘Core Financial Services Solution (CFSS)’, akin to the Core Banking Solution (CBS) adopted by banks.
2. NBFCs in Upper and Middle Layers with fewer than 10 ’Fixed point service delivery units’ and NBFCs in Base Layer may consider implementation of CFSS for their own benefit.
3. The NBFC shall furnish a quarterly progress report on implementation of CFSS, to the Senior Supervisory Manager (SSM) of RBI.
4. The NBFC must review its practices regarding mode of disbursal of loans, application of interest and other charges, charging of Equated Monthly Instalments (EMIs), and take corrective action, including system level changes, as may be necessary, to address unfair practice. 
5. The NBFC must obtain nomination in case of all existing and new eligible customers having deposit accounts, to avoid inconvenience and undue hardship to survivors / family members of deceased depositors. 
6. The NBFC must also report the progress on nomination coverage to SSM, RBI through DAKSH portal on a quarterly basis.
7. In addition to directly notifying the depositors, NBFCs must publicize the benefits of using the nomination facility through various media, including launching periodical drives towards achieving a full coverage of all eligible depositor accounts.

Source: Reserve Bank of India