**Executive Summary**
The document presents the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026, issued on February 06, 2026. These amendments to the Master Directions of 2025 aim to provide operational flexibility to NBFCs for branch expansion while ensuring compliance. The amendment directions come into force with immediate effect and are issued in the public interest.
**Key Points / Main Content**
* **Applicability of Master Direction:**
* Paragraphs 5 and 12 are applicable to deposit-taking NBFCs registered with the RBI and deposit-taking HFCs registered with the RBI.
* Paragraphs 13 to 15 are applicable to CIC registered with the RBI.
* Paragraphs 6, 10 to 11 and 13 to 15 are applicable to specific categories of NBFCs.
* HFCs registered with the RBI
* NBFC-D registered with the RBI
* NBFC-ICC registered with the RBI
* NBFC-Factor registered with the RBI
* NBFC-MFI registered with the RBI
* NBFC-IFC registered with the RBI
* IDF-NBFC registered with the RBI
* **Amendment to Subsection A1:**
* Subsection A1 of the Master Direction is amended to read: "Opening of Branches in India."
* **Amendment to Paragraph 6:**
* Paragraph 6 of the Master Direction is amended to state: "An NBFC is generally permitted to open branches without having the need to obtain prior approval from RBI, unless otherwise specifically restricted.”
* **Deletion of Subsections:**
* Subsections A2 and A3 including paragraphs 7, 8 and 9 of the Master Direction shall stand deleted.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** Increased operational flexibility in branch expansion, simplified branch opening procedures.
* **Action Required:** NBFCs should familiarise themselves with the updated regulations and align their branch expansion strategies accordingly, taking note that prior approval is not needed unless specifically restricted.
**Stakeholder: Reserve Bank of India (RBI)**
* **Impact:** Enhanced regulatory framework for NBFC branch authorizations.
* **Action Required:** Implement and monitor the new directives, especially regarding compliance by NBFCs.
**Stakeholder: Housing Finance Companies (HFCs)**
* **Impact:** Alignment of certain provisions with HFC branch operations, particularly concerning deposit-taking activities.
* **Action Required:** Review current branch operations and ensure compliance with paragraphs 5 and 12 where applicable.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026: The primary subject of the document, outlining amendments to the branch authorization process for Non-Banking Financial Companies.
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025: The existing 'Master Directions' that the 2026 Amendment Directions modify.
Reserve Bank of India (RBI): The regulator issuing the directions and responsible for overseeing Non-Banking Financial Companies.
RBI Act, 1934: The Reserve Bank of India Act, under which the directions are issued and which governs certain aspects of NBFC operations.
NBFCs: Non-Banking Financial Companies, the entities directly affected by the Branch Authorisation Amendment Directions.
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
RBI/2025-26/
DOR.RAUG.REC.No.XXX /23-27-013/2025-26 February 06, 2026
Reserve Bank of India (Non-Banking Financial Companies – Branch
Authorisation) Amendment Directions, 2026 – Draft for Comments
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, as amended from time to time. There is
a need to further amend the same to provide operational flexibility to the NBFCs for
branch expansion while ensuring necessary compliance.
2. Accordingly, in exercise of the powers conferred by Chapter IIIB of the Reserve
Bank of India Act, 1934, and Sections 30A of the National Housing Bank Act, 1987
and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this
regard, the Reserve Bank having considered it necessary in the public interest,
hereby, issues the following Amendment Directions.
3. These Directions shall be called the Reserve Bank of India (Non-Banking
Financial Companies – Branch Authorisation) Amendment Directions, 2026.
4. These Amendment Directions shall come into force with immediate effect.
5. The Reserve Bank of India (Non-Banking Financial Companies – Branch
Authorisation) Directions, 2025 are amended as provided below:
i) In paragraph 3 (1) of the Master Direction, the following shall be
substituted:
3 (1) These Directions shall be applicable to the following Non-Banking
Financial Companies (hereinafter collectively referred to as ‘NBFCs’ and
individually as an ‘NBFC’), for all layers:
(i) The provisions contained in paragraphs 5 and 12 shall be applicable to
deposit taking NBFCs registered with the RBI under the provisions of theRBI Act, 1934 and deposit taking HFCs registered with RBI under the
provisions of the NHB Act, 1987;
(ii) The provisions contained in paragraphs 13 to 15 shall be applicable to
CIC registered with the RBI under the provisions of the RBI Act, 1934;
(iii) The provisions contained in paragraphs 6, 10 to 11 and 13 to 15 shall be
applicable to the following categories of NBFCs:
(a) HFCs registered with the RBI under the provisions of the NHB Act,
1987;
(b) NBFC-D registered with the RBI under the provisions of the RBI Act,
1934;
(c) NBFC-ICC registered with the RBI under the provisions of the RBI
Act, 1934;
(d) NBFC-Factor registered with the RBI under the provisions of the
Factoring Regulation Act, 2011;
(e) NBFC-MFI registered with the RBI under the provisions of the RBI
Act, 1934;
(f) NBFC-IFC registered with the RBI under the provisions of the RBI Act,
1934;
(g) IDF-NBFC registered with the RBI under the provisions of the RBI Act,
1934;
ii) In subsection A1 of the Master Direction, the following shall be substituted:
“Opening of Branches in India.”
iii) In paragraph 6 of the Master Direction, the following shall be substituted:
“An NBFC is generally permitted to open branches without having the need to
obtain prior approval from RBI, unless otherwise specifically restricted.”
iv) Subsections A2 and A3 including paragraphs 7, 8 and 9 of the Master
Direction shall stand deleted.
Yours faithfully,
Chief General Manager