RBI to Simplify Registration for Small NBFCs
The RBI proposes to exempt non-deposit-taking NBFCs under Rs 1,000 crore from registration, classifying them as Type-I NBFCs to ease compliance. These companies operate without public funds and customer interaction, posing minimal risk. Stakeholder comments are invited by March 4.
- Country:
- India
The Reserve Bank of India (RBI) announced its draft proposal on Tuesday to streamline compliance for certain non-banking financial companies (NBFCs) by exempting them from registration requirements. This move targets non-deposit-taking NBFCs with an asset size below Rs 1,000 crore, aiming to classify them as Type-I NBFCs.
According to the RBI, these companies, which neither avail public funds nor have customer interfaces, fall into a lower risk category due to their peculiar business model. As a result, they will no longer be required to register with the central bank starting April 1, 2026, as per the draft Reserve Bank of India Amendment Directions, 2026.
The RBI has invited comments from stakeholders by March 4 and clarified that any Type-I NBFC wishing to access public funds or engage with customers will need to register as a Type-II NBFC to avoid penalties.
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