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The complete library of RBI Master Directions for NBFCs 2025 — all 35 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.
On November 28, 2025, the Reserve Bank consolidated its NBFC regulations into these 35 Master Directions, replacing the earlier scattered circulars with a single regime built around Scale Based Regulation. The SBR framework classifies every NBFC into one of four layers — Base (NBFC-BL), Middle (NBFC-ML), Upper (NBFC-UL), and Top (NBFC-TL) — with requirements becoming progressively stringent from Base to Top, so systemically important NBFCs face stricter supervision while smaller NBFCs face proportionate regulation.
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.
For NBFCs, HFCs, ARCs, and DFIs needing counsel on RBI Master Direction compliance, SBR layer reclassification, ICA negotiation, supervisory engagement, or the recovery interface — see our dedicated practice page.
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...
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 ...
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...
Governs the undertaking of financial services activities by NBFCs, including overseas investments, entry into insurance business, distribution of mutual fund products, participatio...
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...
Comprehensive governance framework for NBFCs under the Scale Based Regulation regime. Covers board composition, risk management committees, appointment of CRO and CCO, independent ...
Regulates dividend declaration by NBFCs and Standalone Primary Dealers. Prescribes board oversight requirements, eligibility criteria (CRAR compliance, net NPA threshold, minimum p...
Collects miscellaneous regulatory instructions applicable across NBFC categories and SBR layers. Covers layer-specific miscellaneous instructions for Base and Middle Layer NBFCs, s...
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...
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...
Governs the classification, valuation, and operation of NBFC investment portfolios. Covers accounting for government securities, corporate bonds, Alternative Investment Funds (AIFs...
Core prudential norms for income recognition, asset classification, and provisioning by NBFCs. Prescribes NPA recognition criteria (90-day default), asset classification into Stand...
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...
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...
Comprehensive direction on credit facility operations by NBFCs. Covers digital lending through NBFC-LSP arrangements, gold and silver collateral lending (LTV ratios, valuation), mi...
Governs credit card issuance and conduct by NBFCs. Covers card issuance procedures, billing cycles, interest computation, credit limit management, co-branding arrangements with non...
Mandates credit information reporting by NBFCs to Credit Information Companies (CICs). Covers data formats, reporting timelines, Data Quality Index (DQI), credit information correc...
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...
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...
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...
Comprehensive framework for securitisation transactions by NBFCs. Covers eligibility criteria, Minimum Retention Requirement (MRR), origination standards, STC securitisation criter...
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...
Framework for managing risks associated with outsourcing of financial services by NBFCs. Specifies activities that cannot be outsourced, governance requirements, board-approved out...
Introduces the climate finance and climate risk management framework for NBFCs. Establishes the framework for acceptance of green deposits, including eligible financing sectors, us...
Comprehensive KYC and Anti-Money Laundering (AML) framework for NBFCs. Covers customer acceptance and identification procedures, risk-based customer due diligence, record managemen...
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...
Comprehensive regulatory framework specifically for Housing Finance Companies (HFCs) registered with RBI under the NHB Act, 1987. Covers registration, capital adequacy, IRAC norms,...
Complete regulatory framework for Standalone Primary Dealers (SPDs) registered as NBFCs with RBI. Covers registration, capital requirements including CRAR, sources and application ...
Regulatory framework for Core Investment Companies (CICs) — NBFCs whose primary business is holding investments in group companies. Covers registration requirements, capital adequa...
Regulates NBFC-Account Aggregators (NBFC-AA) that provide consent-based data sharing services. Covers registration requirements, permissible scope of activities (retrieving and con...
Regulatory framework for Mortgage Guarantee Companies (MGCs) registered with RBI. Covers registration and permissible activities (issuing mortgage guarantees to housing finance ins...
Regulates NBFC-P2P (Peer to Peer Lending Platforms). Covers registration, permissible activities (acting as intermediary between lenders and borrowers), aggregate exposure limits (...
Regulatory framework for NBFC-Microfinance Institutions (NBFC-MFI). Defines qualifying assets (microfinance loans to households with annual income up to specified limits), permissi...
Governs Non-Operative Financial Holding Companies (NOFHCs) — entities set up as holding structures for financial conglomerates. Covers registration, regulatory structure, sharehold...
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.
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.
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.
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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