RBI’s 2026 draft on NBFC Registration and Scale-Based Regulation introduces a risk-based framework where regulatory requirements depend on the size, activities, and risk profile of an NBFC. It proposes lighter compliance for low-risk entities and tighter supervision for customer-facing or fund-raising NBFCs.
Key Points
- Introduces risk-based regulation for NBFCs
- Categorises NBFCs based on public funds, customer interface, and scale
- Proposes registration exemptions for certain low-risk NBFCs
- Retains RBI’s supervisory and enforcement powers
- Reduces compliance burden for non-customer, non-public fund NBFCs
- Strengthens governance and risk norms for larger NBFCs
- Aligns compliance requirements with growth under the SBR framework
- Improves regulatory clarity for expansion and funding plans
- Encourages early review of business models and registration status
- Aims to balance ease of doing business with financial stability
