RBI Issues Amended Norms on Opening of Branches by NBFCs
In April 2026, the Reserve Bank of India (RBI) issued the amended guidelines titled RBI (Non-Banking Financial Companies (NBFC) -Branch Authorisation)Amendment Directions, 2026, introducing greater operational flexibility for NBFCs while maintaining regulatory safeguards.
Key Highlights
Effective from: The amendment directions shall come into force with immediate effect.
Application submission: Applications must be submitted through the PRAVAAH (Platform for Regulatory Application, Validation And AutHorisation) portal.
Branch Expansion
Conditions: The conditions for opening branches for Deposit taking – NBFCs are:
Up to Rs 50 Crores (Cr): Deposit-taking NBFCs with net owned funds (NOF) up to Rs 50 cr or with lower credit ratings are permitted to open branches only within the state of their registered office.
In April 2026, the Reserve Bank of India (RBI) issued the amended guidelines titled RBI (Non-Banking Financial Companies (NBFC) -Branch Authorisation)Amendment Directions, 2026, introducing greater operational flexibility for NBFCs while maintaining regulatory safeguards.
Key Highlights
Effective from: The amendment directions shall come into force with immediate effect.
Application submission: Applications must be submitted through the PRAVAAH (Platform for Regulatory Application, Validation And AutHorisation) portal.
Branch Expansion
Conditions: The conditions for opening branches for Deposit taking – NBFCs are:
Up to Rs 50 Crores (Cr): Deposit-taking NBFCs with net owned funds (NOF) up to Rs 50 cr or with lower credit ratings are permitted to open branches only within the state of their registered office.
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