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ARTICLE · 28 JULY 2026

RBI Relaxes Registration Requirements For NBFCs

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The Reserve Bank of India has introduced a new classification system for Non-Banking Financial Companies, fundamentally changing registration requirements based on public funding access, customer interface, and asset size thresholds. These regulatory changes create distinct compliance pathways for different NBFC categories while introducing new rules for group entities and overseas investments.

IndiaFinance and Banking
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The RBI has relaxed compliance requirements for Non-Banking Financial Companies (‘NBFCs’), some of which are as follows:

  1. Reclassification of NBFCs: (a) Type I NBFC which is an NBFC not availing public funds (at present or in the future), having no customer interface (at present or in the future) and having an asset size of INR 1,000 crore (approx. USD 104.77 million) or above; (b) Type II NBFC which is an NBFC availing public funds (at present or in the future) and/or having customer interface (at present or in the future); and (c) Unregistered Type I NBFC which is an NBFC not availing public funds (at present or in the future), having no customer interface (at present or in the future) but having an asset size of less than INR 1,000 crore (approx. USD 104.77 million );

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