**Executive Summary**
The Reserve Bank of India (RBI) has issued draft Amendment Directions on Non-Banking Financial Companies (NBFCs) Branch Authorisation Directions, following the Governor's statement on February 06, 2026. These amendments will remove the prior approval/intimation requirement for NBFCs opening branches in India. The RBI invites public comments on these draft Amendment Directions until February 27, 2026.
**Key Points / Main Content**
* **Background:**
* The guidelines for opening and closing NBFC branches are currently prescribed under the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025.
* These directions apply to various NBFC categories, including Housing Finance Companies (HFCs).
* **Amendment:**
* The RBI has decided to dispense with the requirement of prior approval or intimation for opening NBFC branches in India.
* The Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026, has been published.
* 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.
* **Public Comment:**
* Regulated Entities and interested parties are invited to submit comments on the draft Amendment Directions by February 27, 2026.
* Comments can be submitted through the "Connect 2 Regulate" section on the Reserve Bank's website.
* Alternatively, comments can be forwarded to The Chief General Manager via email.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs)**
* **Impact:** Removes the need to seek prior approval/intimation for opening new branches in India.
* **Action Required:** Review the draft Amendment Directions and submit comments/feedback to the RBI by February 27, 2026.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025: Guidelines issued by RBI regarding the opening and closure of branches of Non-Banking Financial Companies (NBFCs)
Reserve Bank of India: The central bank of India.
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026: Amendment directions for NBFC branch authorisation
Connect 2 Regulate: A section on the Reserve Bank's website for submitting comments and feedback
Mumbai: Location of the Reserve Bank of India's Central Office
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