RBI issues Registration, Exemptions and Framework for Scale Based Regulation (Amendment) Directions, 2026; proposes to exempt NBFCs ‘not availing public funds and not having customer interface’ from registration requirement

The Reserve Bank of India (“RBI”) has published draft Amendment Directions for exemption from registration to eligible NBFCs ‘not availing public funds and not having customer interface (including ‘Type I NBFCs’)’. Accordingly, RBI has issued Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 (“Draft Amendment”) to further amend the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025. These Directions will come into force from April 01, 2026.

Upon conducting a review of the regulatory framework and considering their peculiar business model and lower risk profile, RBI has proposed that the ‘NBFCs not availing public funds and not having customer interface’, with asset size of less than Rs.1000 crore, will be exempted from registration requirement with the RBI, duly subject to the conditions as specified by the RBI.

The comments on the said Draft Amendment Directions are invited from the stakeholders till March 04, 2026. The comments / feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section available on the Reserve Bank’s website or may alternatively be forwarded to

The Chief General Manager– in – Charge
Department of Regulation (SIG-NBFCs)
Reserve Bank of India
12th Floor, Central Office Building
Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001

Or, by email with the subject line ‘Feedback on the draft ‘Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026’.

Key Proposals:

1. NBFCs not availing public funds and not having any customer interface have been excluded from the Base Layer of the regulatory structure.

2. Existing ‘NBFCs not availing public funds and not having any customer interface’, including those holding Certificate of Registration as ‘Type I NBFC’ as on April 01, 2026, and fulfilling the prescribed criteria for exemption, can apply to the Reserve Bank, for deregistration, within a period of six months i.e., by September 30, 2026.

3. The application for de-registration must be made through PRAVAAH, on the company’s letter head with the prescribed documents.

4. NBFCs not availing public funds and not having any customer interface and having asset size of ₹1,000 crore or more, will have to mandatorily obtain registration as ‘Type I NBFC’ through PRAVAAH, with requisite submissions and documents. The Certificate of Registration as ‘Type I NBFC’ shall be issued by the Reserve Bank on being satisfied that the conditions for registration are fulfilled by the company.

5. Existing ‘NBFCs not availing public funds and not having any customer interface’ which are not holding Certificate of Registration as ‘Type I NBFC’ shall be ineligible for relaxed regulatory requirements as available to NBFCs holding Certificate of Registration as ‘Type I NBFC’.

Source: Reserve Bank of India