RBI eases registration norms for certain NBFCs; exempts entities with assets below ₹1,000 crore
May 02, 2026
Reserve Bank of India eases NBFC registration for entities under 1000 crore assets, exempting those without public funds or customer interface from July 2026
RBI will exempt NBFCs with assets below 1000 crore from registration if they do not use public funds or have customer interface, effective July 1, 2026, with deregistration allowed
By Asmita Pant
The Reserve Bank of India (RBI) has relaxed registration requirements for a category of non-banking financial companies (NBFCs), exempting those with asset sizes below ₹1,000 crore from mandatory registration, subject to conditions.
Under the revised framework, NBFCs that do not avail public funds and do not have any customer interface will be exempt from the provisions of Sections 45IA and 45IC of the RBI Act, 1934, if their asset size is less than ₹1,000 crore as per the latest audited balance sheet. The exemption will come into effect from July 1, 2026.
Earlier, entities with more than 50% of their assets classified as financial assets—including investments such as mutual funds—were required to register as NBFCs. The revised norms provide relief to smaller entities, including family offices, that meet the specified criteria.
The central bank said existing NBFCs that do not avail public funds and do not have a customer interface, including those registered as ‘Type I NBFCs’, can apply for deregistration if they meet the exemption criteria. Such applications must be submitted within six months, by December 31, 2026.
The changes are part of the ‘Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026’, issued following stakeholder consultations on draft norms released in February this year.
Also Read: RBI to keep on deepening financial markets; India's macroeconomic fundamentals strong: Governor
By Asmita Pant
The Reserve Bank of India (RBI) has relaxed registration requirements for a category of non-banking financial companies (NBFCs), exempting those with asset sizes below ₹1,000 crore from mandatory registration, subject to conditions.
Under the revised framework, NBFCs that do not avail public funds and do not have any customer interface will be exempt from the provisions of Sections 45IA and 45IC of the RBI Act, 1934, if their asset size is less than ₹1,000 crore as per the latest audited balance sheet. The exemption will come into effect from July 1, 2026.
Earlier, entities with more than 50% of their assets classified as financial assets—including investments such as mutual funds—were required to register as NBFCs. The revised norms provide relief to smaller entities, including family offices, that meet the specified criteria.
The central bank said existing NBFCs that do not avail public funds and do not have a customer interface, including those registered as ‘Type I NBFCs’, can apply for deregistration if they meet the exemption criteria. Such applications must be submitted within six months, by December 31, 2026.
The changes are part of the ‘Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026’, issued following stakeholder consultations on draft norms released in February this year.
Also Read: RBI to keep on deepening financial markets; India's macroeconomic fundamentals strong: Governor