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ARTICLE · 03 JULY 2026

RBI's Revised Framework For Agency Business And Third-Party Product Distribution By NBFC's

Khaitan & Co.
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The package comprises two parallel tracks: (a) amendments to the master directions in relation to the undertaking of financial services applicable to each regulated entity respectively; and (b) amendments to the master directions governing responsible business conduct (RBC) applicable to each regulated entity respectively, which introduce comprehensive requirements on advertising, marketing, sale, and conduct, including an express prohibition on compulsory bundling, a codified mis-selling framework with mandatory refunds, and regulation of dark patterns.

IndiaFinance and Banking
Smita Jha
Smita Jha
Diksha Singh
Diksha Singh
Navya Saxena
Navya Saxena
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Introduction

On 15 June 2026, the Reserve Bank of India (RBI) issued, inter alia, the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Second Amendment Directions, 2026 (Amendment Directions), revising the framework governing agency business and third-party product distribution by non-banking financial companies (NBFCs) (including housing finance companies (HFCs)), as set out under the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 (Existing Directions). We have set out below our analysis of the key changes introduced under the Amendment Directions.

Background and context

The Amendment Directions form part of a broader package of 17 entity-specific notifications issued on the same date, spanning all categories of RBI-regulated entities.

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