**Executive Summary**
The Reserve Bank of India (RBI) invites public comments on the draft Amendment Directions on Non-Banking Financial Companies (NBFCs) – Branch Authorisation Directions. This amendment dispenses with the requirement of prior approval/intimation for opening branches in India by NBFCs. Comments must be submitted by February 27, 2026.
**Key Points / Main Content**
* **Background:**
* The Reserve Bank issued the "Reserve Bank of India (Non-Banking Financial Companies - Branch Authorisation) Directions, 2025" (Master Directions) on November 28, 2025, prescribing regulations for opening and closing NBFC branches.
* **Amendment:**
* The RBI has published the "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" shall be amended suitably.
* The requirement of prior approval/intimation for NBFCs to open branches in India will be removed.
* **Comments & Feedback:**
* The RBI invites comments on the draft Amendment Directions from regulated entities and interested parties.
* The deadline for submitting comments is February 27, 2026.
* Comments can be submitted through the 'Connect 2 Regulate' Section on the Reserve Bank's website or by email to the Chief General Manager with the subject line ‘Feedback on Amendment to NBFC Branch Authorisation Directions’.
**Impact Analysis**
**Regulated Entities (NBFCs and HFCs)**
* **Impact:** NBFCs, including HFCs, are affected by the revised branch authorization rules.
* **Action Required:** Review the draft Amendment Directions and provide feedback to the RBI by February 27, 2026, via the 'Connect 2 Regulate' Section on the Reserve Bank's website or by email.
**Interested Parties**
* **Impact:** Other parties with an interest in the regulation of NBFCs will be affected.
* **Action Required:** Review the draft Amendment Directions and provide feedback to the RBI by February 27, 2026, via the 'Connect 2 Regulate' Section on the Reserve Bank's website or by email.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary regulator mentioned in the document.
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025: The original directions governing branch authorization for NBFCs, subject to amendment.
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026: The draft amendment directions on which the RBI seeks public comments.
Mumbai: Location of the Reserve Bank of India's Central Office where comments may be forwarded.
'Connect 2 Regulate': The section on the Reserve Bank of India's website through which feedback can be submitted.
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