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ARTICLE · 18 MARCH 2026

Leadership Tenure Limits For Large NBFCs Under RBI’s Governance Review

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India’s financial system has undergone a significant shift over the past decade. Large non-banking financial companies (NBFCs) now play a central role in credit delivery across sectors ranging from consumer finance to infrastructure.

IndiaFinance and Banking
Helen Stanis Lepcha
Helen Stanis Lepcha
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I. Introduction

India’s financial system has undergone a significant shift over the past decade. Large non-banking financial companies (NBFCs) now play a central role in credit delivery across sectors ranging from consumer finance to infrastructure. As their scale and systemic relevance have grown, regulators have increasingly focused on ensuring that governance standards evolve alongside this growth.

Recent developments suggest that the RBI may extend leadership rotation norms, which is currently applicable to banks to large NBFCs. The suggestion represents a larger regulatory push to improve governance procedures in institutions that are increasingly critical to India’s financial stability.

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