Small NBFCs Without Public Funds May Get RBI Registration Exemption; Branch Norms Ease
The Reserve Bank of India has proposed regulatory relief for certain Non-Banking Financial Companies (NBFCs). NBFCs that do not have access to public funds, have no customer interface, and have an asset size not exceeding ₹1,000 crore may be exempted from the requirement of mandatory registration with the RBI. This move aims to reduce regulatory burden on smaller, low-risk entities. In addition, the RBI has proposed to do away with the requirement for certain NBFCs to seek prior approval for opening more than 1,000 branches. The measures are intended to simplify compliance while maintaining overall financial stability.
The Reserve Bank of India has proposed regulatory relief for certain Non-Banking Financial Companies (NBFCs). NBFCs that do not have access to public funds, have no customer interface, and have an asset size not exceeding ₹1,000 crore may be exempted from the requirement of mandatory registration with the RBI. This move aims to reduce regulatory burden on smaller, low-risk entities. In addition, the RBI has proposed to do away with the requirement for certain NBFCs to seek prior approval for opening more than 1,000 branches. The measures are intended to simplify compliance while maintaining overall financial stability.
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