The Reserve Bank of India has published draft amendments to its Non-Banking Financial Companies (NBFCs) Branch Authorisation Directions and invited public comment, proposing to dispense with the requirement for NBFCs to obtain prior approval or give prior intimation to open branches in India. The proposal follows a comprehensive review of the current NBFC branch opening and closure framework set out in the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025, which applies to various categories of NBFCs including housing finance companies. The RBI also indicated that relevant paragraphs in the Reserve Bank of India (Non-Banking Financial Companies - Acceptance of Public Deposits) Directions, 2025 and the Reserve Bank of India (Housing Finance Companies) Directions, 2025 will be amended consequentially. Comments from regulated entities and other interested parties are due by February 27, 2026, including via the RBI’s ‘Connect 2 Regulate’ channel.
Reserve Bank of India 2026-02-06
Reserve Bank of India consults on dropping prior approval or intimation for NBFC branch openings in India
The Reserve Bank of India has issued draft amendments to its Non-Banking Financial Companies Branch Authorisation Directions, proposing to eliminate the need for NBFCs to obtain prior approval or give prior intimation to open branches in India. Public comments are invited by February 27, 2026, with consequential amendments to related directions anticipated.