Non-Banking Financial CompaniesComplete Regulatory Framework
All 35 RBI Master Directions governing Non-Banking Financial Companies under the Scale Based Regulation (SBR) framework, issued November 28, 2025. Download the full PDF of each direction, view chapter-wise contents, and understand the regulatory landscape for NBFCs in India.
Source: Reserve Bank of India (rbi.org.in). These Master Directions are public regulatory documents issued under Sections 45JA, 45K, 45L, 45M of the RBI Act, 1934. Reproduced for informational purposes with full attribution.
Registration & Structure4 directions
Registration & Scale Based Regulation
This master direction lays down the regulatory framework for NBFC registration under the Scale Based Regulation (SBR) approach. It classifies NBFCs into four layers — Base Layer (N...
Voluntary Amalgamation
Prescribes the process and conditions for voluntary amalgamation of NBFCs, including the procedure for obtaining a No Objection Certificate (NOC) from the Reserve Bank. Applicable ...
Branch Authorisation
Regulates the opening, closure, and shifting of branches by NBFCs including deposit-taking NBFCs, Housing Finance Companies, and Investment and Credit Companies. Also covers openin...
Undertaking of Financial Services
Governs the undertaking of financial services activities by NBFCs, including overseas investments, entry into insurance business, distribution of mutual fund products, participatio...
Governance & Compliance4 directions
Acquisition of Shareholding or Control
Governs the acquisition of shareholding or control in NBFCs, including requirements for prior RBI approval when acquiring significant stakes. Covers investment from FATF non-compli...
Governance
Comprehensive governance framework for NBFCs under the Scale Based Regulation regime. Covers board composition, risk management committees, appointment of CRO and CCO, independent ...
Prudential Norms on Declaration of Dividends
Regulates dividend declaration by NBFCs and Standalone Primary Dealers. Prescribes board oversight requirements, eligibility criteria (CRAR compliance, net NPA threshold, minimum p...
Miscellaneous Directions
Collects miscellaneous regulatory instructions applicable across NBFC categories and SBR layers. Covers layer-specific miscellaneous instructions for Base and Middle Layer NBFCs, s...
Prudential Norms6 directions
Prudential Norms on Capital Adequacy
Prescribes capital adequacy norms for NBFCs including minimum capital ratios, CET1 capital elements, Tier 1 and Tier 2 capital components, leverage ratio requirements, risk-weighte...
Acceptance of Public Deposits
Regulates acceptance of public deposits by deposit-taking NBFCs (NBFC-D). Covers liquid asset maintenance requirements, restrictions on deposit acceptance, ceiling on quantum of de...
Classification, Valuation and Operation of Investment Portfolio
Governs the classification, valuation, and operation of NBFC investment portfolios. Covers accounting for government securities, corporate bonds, Alternative Investment Funds (AIFs...
Income Recognition, Asset Classification and Provisioning (IRAC)
Core prudential norms for income recognition, asset classification, and provisioning by NBFCs. Prescribes NPA recognition criteria (90-day default), asset classification into Stand...
Resolution of Stressed Assets
Framework for resolution of stressed assets held by NBFCs with asset size of Rs 500 crore or more. Covers early identification of stress, Inter-Creditor Agreements, resolution plan...
Treatment of Wilful Defaulters and Large Defaulters
Prescribes the identification, classification, and treatment of wilful defaulters and large defaulters by NBFCs. Covers the role of the Board and Identification Committee, penal me...
Credit & Lending3 directions
Credit Facilities
Comprehensive direction on credit facility operations by NBFCs. Covers digital lending through NBFC-LSP arrangements, gold and silver collateral lending (LTV ratios, valuation), mi...
Credit Cards: Issuance and Conduct
Governs credit card issuance and conduct by NBFCs. Covers card issuance procedures, billing cycles, interest computation, credit limit management, co-branding arrangements with non...
Credit Information Reporting
Mandates credit information reporting by NBFCs to Credit Information Companies (CICs). Covers data formats, reporting timelines, Data Quality Index (DQI), credit information correc...
Risk Management7 directions
Credit Risk Management
Framework for credit risk management by NBFCs. Covers board-approved credit risk policies, credit evaluation processes, regulatory restrictions on lending, CDS usage by NBFCs, Lega...
Concentration Risk Management
Prescribes concentration risk limits for NBFC lending and investment exposures across each SBR layer. Sets single borrower and group exposure ceilings as a percentage of owned fund...
Transfer and Distribution of Credit Risk
Regulates the transfer and distribution of credit risk by NBFCs through loan transfers and co-lending arrangements. Part A covers transfer of performing and stressed loans with con...
Securitisation Transactions
Comprehensive framework for securitisation transactions by NBFCs. Covers eligibility criteria, Minimum Retention Requirement (MRR), origination standards, STC securitisation criter...
Asset Liability Management
Establishes the asset liability management (ALM) framework for NBFCs. Covers the role of the Board and ALCO, ALM information systems, maturity profiling, liquidity mismatch managem...
Managing Risks in Outsourcing
Framework for managing risks associated with outsourcing of financial services by NBFCs. Specifies activities that cannot be outsourced, governance requirements, board-approved out...
Climate Finance and Management of Climate Change Risks
Introduces the climate finance and climate risk management framework for NBFCs. Establishes the framework for acceptance of green deposits, including eligible financing sectors, us...
Disclosure & Reporting1 direction
Consumer Protection2 directions
Know Your Customer (KYC)
Comprehensive KYC and Anti-Money Laundering (AML) framework for NBFCs. Covers customer acceptance and identification procedures, risk-based customer due diligence, record managemen...
Responsible Business Conduct
Establishes the responsible business conduct framework for NBFCs. Covers the Fair Practices Code, Key Facts Statement for loans, penal charges regulation, floating interest rate re...
Specialised NBFCs8 directions
Housing Finance Companies
Comprehensive regulatory framework specifically for Housing Finance Companies (HFCs) registered with RBI under the NHB Act, 1987. Covers registration, capital adequacy, IRAC norms,...
Standalone Primary Dealers
Complete regulatory framework for Standalone Primary Dealers (SPDs) registered as NBFCs with RBI. Covers registration, capital requirements including CRAR, sources and application ...
Core Investment Companies
Regulatory framework for Core Investment Companies (CICs) — NBFCs whose primary business is holding investments in group companies. Covers registration requirements, capital adequa...
Account Aggregator
Regulates NBFC-Account Aggregators (NBFC-AA) that provide consent-based data sharing services. Covers registration requirements, permissible scope of activities (retrieving and con...
Mortgage Guarantee Companies
Regulatory framework for Mortgage Guarantee Companies (MGCs) registered with RBI. Covers registration and permissible activities (issuing mortgage guarantees to housing finance ins...
Peer to Peer Lending Platform
Regulates NBFC-P2P (Peer to Peer Lending Platforms). Covers registration, permissible activities (acting as intermediary between lenders and borrowers), aggregate exposure limits (...
Microfinance Institution
Regulatory framework for NBFC-Microfinance Institutions (NBFC-MFI). Defines qualifying assets (microfinance loans to households with annual income up to specified limits), permissi...
Non-Operative Financial Holding Company (NOFHC)
Governs Non-Operative Financial Holding Companies (NOFHCs) — entities set up as holding structures for financial conglomerates. Covers registration, regulatory structure, sharehold...
About RBI Master Directions for NBFCs
What are RBI Master Directions for NBFCs?
RBI Master Directions for NBFCs are consolidated regulatory instructions issued by the Reserve Bank of India under the Scale Based Regulation (SBR) framework. Issued on November 28, 2025, these 35 directions replace earlier scattered circulars and provide a comprehensive regulatory regime covering registration, governance, capital adequacy, asset classification, risk management, and consumer protection for all categories of Non-Banking Financial Companies.
What is the Scale Based Regulation framework for NBFCs?
The Scale Based Regulation (SBR) framework classifies NBFCs into four layers based on their size, activity, and perceived risk: Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL), and Top Layer (NBFC-TL). Regulatory requirements become progressively stringent from Base to Top layer, ensuring that systemically important NBFCs face stricter supervision while smaller NBFCs face proportionate regulation.
Are these directions legally binding on NBFCs?
Yes. RBI Master Directions are issued under the statutory powers conferred by the Reserve Bank of India Act, 1934 (Sections 45JA, 45K, 45L, 45M), the Factoring Regulation Act, 2011, and the National Housing Bank Act, 1987. Non-compliance can attract penalties under Section 58B of the RBI Act, including monetary fines and cancellation of the Certificate of Registration.
Can I freely download and share these RBI directions?
Yes. RBI Master Directions are public regulatory documents with no copyright restrictions. They are published on rbi.org.in for public access and are intended for the widest possible distribution to ensure regulatory compliance by all stakeholders.
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