**Executive Summary**
The Reserve Bank of India (RBI) has released draft Amendment Directions regarding Branch Authorisation for Non-Banking Financial Companies (NBFCs). This amendment dispenses with the prior approval/intimation requirement for NBFCs opening branches in India. Public comments on the draft are invited until February 27, 2026.
**Key Points / Main Content**
* **Background:**
* The existing guidelines for NBFC branch opening and closure are outlined in the "Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025," issued on November 28, 2025.
* These directions prescribe regulations for opening and closing NBFC branches.
* **Amendment Directions:**
* The RBI has published "Reserve Bank of India (Non-Banking Financial Companies - Branch Authorisation) Amendment Directions, 2026."
* Relevant paragraphs of 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 accordingly.
* The requirement for prior approval/intimation for opening NBFC branches in India has been dispensed with.
* **Public Comment:**
* RBI invites comments on the draft Amendment Directions.
* The deadline for submitting comments is February 27, 2026.
* Comments can be submitted via the "Connect 2 Regulate" section on the RBI website or via email.
**Impact Analysis**
**Regulated Entities (NBFCs) Impact**
* **Impact:** NBFCs will no longer need to seek prior approval or provide intimation to the RBI for opening branches in India.
* **Action Required:** Review the amendment directions and provide feedback to RBI by February 27, 2026, if desired.
**Other Interested Parties Impact**
* **Impact:** Interested parties can influence the final form of the amendment directions.
* **Action Required:** Review the amendment directions and provide feedback to RBI by February 27, 2026, if desired.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025: Directions issued by RBI that prescribe regulations on opening and closure of NBFC branches.
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026: Amendment to the existing directions regarding branch authorisation of NBFCs.
Reserve Bank of India (Non-Banking Financial Companies – Acceptance of Public Deposits) Directions, 2025: Directions related to the acceptance of public deposits by NBFCs, to be amended suitably.
Reserve Bank of India (Housing Finance Companies) Directions, 2025: Directions relating to Housing Finance Companies (HFCs), to be amended suitably.
Mumbai: Location of the RBI Central Office, relevant for feedback submission.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 06, 2026
RBI invites public comments on the draft Amendment Directions on Non-
Banking Financial Companies – Branch Authorisation Directions
The Reserve Bank had issued the Reserve Bank of India (Non-Banking Financial
Companies – Branch Authorisation) Directions, 2025 (hereafter referred as the
‘Master Directions’), on November 28, 2025, which inter alia prescribes regulations
on opening and closure of branches of Non-Banking Financial Companies (NBFCs).
As announced in the Governor’s Statement on February 06, 2026, the Reserve Bank
has today published the Reserve Bank of India (Non-Banking Financial Companies –
Branch Authorisation) Amendment Directions, 2026. Consequently, relevant
paragraphs of 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, shall be amended suitably.
The comments on the draft Amendment Directions are invited from the Regulated
Entities, and other interested parties till February 27, 2026. The comments /
feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section
available on the Reserve Bank’s website or may alternatively be forwarded to
The Chief General Manager
Registration and Authorisation Group
Department of Regulation, Central Office
Reserve Bank of India, 12th Floor
Shahid Bhagat Singh Marg
Fort, Mumbai – 400 001
Or
by email
With the subject line ‘Feedback on Amendment to NBFC Branch Authorisation
Directions’.
Background and Objective
The extant guidelines on opening and closure of branches of NBFCs are
prescribed under the Reserve Bank of India (Non-Banking Financial Companies –
Branch Authorisation) Directions, 2025, applicable to various categories of NBFCs
(including HFCs). Based on a comprehensive review and taking into consideration
the evolving regulatory landscape, it has been decided to dispense with the
requirement of prior approval/intimation for opening of branches in India by the
NBFCs.
(Brij Raj)
Press Release: 2025-2026/2059 Chief General Manager