In our earlier article1, we had analysed the draft directions issued by the Reserve Bank of India on February 10, 2026, which proposed a significant regulatory relief for certain categories of NBFCs particularly those operating without public funds and customer interface.
Pursuant to stakeholder feedback, RBI has now issued the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 on April 29, 2026, with effect from July 1, 2026.
The final framework retains the core intent of the draft while introducing critical safeguards to prevent regulatory arbitrage, especially at the group level.
Introduction of ‘Unregistered Type I NBFCs’
