RBI Eases Rules for Small NBFCs, Grants Exemptions from July 1, 2026
In April 2026, the Reserve Bank of India (RBI) issued the final guidelines, RBI (Non-Banking Financial Companies(NBFC) – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 for NBFCs not availing public funds and not having customer interface. The regulations come into effect from July 1, 2026.
Framework:
Unregistered Type I NBFCs: NBFCs that do not avail of public funds and do not have a customer interface and have an asset size of less than Rs 1,000 crore (Crs) from the requirement of registration with the RBI.
In April 2026, the Reserve Bank of India (RBI) issued the final guidelines, RBI (Non-Banking Financial Companies(NBFC) – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 for NBFCs not availing public funds and not having customer interface. The regulations come into effect from July 1, 2026.
Framework:
Unregistered Type I NBFCs: NBFCs that do not avail of public funds and do not have a customer interface and have an asset size of less than Rs 1,000 crore (Crs) from the requirement of registration with the RBI.
- These entities will be classified as ‘Unregistered Type I NBFCs’, while all other NBFCs will be categorised as ‘Type II NBFCs’.
One-time window: Existing NBFCs meeting these criteria have been given a one-time window to apply for deregistration by December 31, 2026, introducing, for the first time, a structured exit route from the regulatory framework.
Suo Motu Loan Resolution in Calamities: The RBI also issued directions in which it has allowed banks and non-bank lenders to implement suo motu resolution for borrowers affected by natural calamities on the recommendation of the State Level Bankers’ Committee (SLBC).
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- The revised rules will come into effect from 1 July 2026.
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