**Executive Summary**
This document outlines the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026. It serves as an amendment to the Master Directions issued on November 28, 2025, providing operational flexibility to NBFCs for branch expansion. These directions are effective immediately.
**Key Points / Main Content**
* **Title and Scope:**
* These directives are called the "Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026".
* **Applicability of Paragraphs:**
* Paragraphs 5 and 12 now apply to deposit-taking NBFCs registered with the RBI and deposit-taking HFCs registered with the RBI.
* Paragraphs 13 to 15 apply to CICs registered with the RBI.
* Paragraphs 6, 10 to 11 and 13 to 15 are applicable to HFCs, NBFC-D, NBFC-ICC, NBFC-Factor, NBFC-MFI, NBFC-IFC and IDF-NBFC registered with the RBI.
* **Branch Opening:**
* The heading for subsection A1 of the Master Direction is changed to "Opening of Branches in India".
* Paragraph 6 is updated to state that NBFCs can generally open branches without prior RBI approval, unless restricted.
* **Deletion of Subsections:**
* Subsections A2 and A3, including paragraphs 7, 8, and 9 of the Master Direction, are deleted.
**Impact Analysis**
**Stakeholder:** Non-Banking Financial Companies (NBFCs)
**Impact:**
Affected by changes to branch authorization rules, eligibility for opening branches, and compliance requirements.
**Action Required:**
Need to understand and implement the new directives for branch expansion and adhere to updated regulations.
**Stakeholder:** Housing Finance Companies (HFCs)
**Impact:**
Affected by changes to branch authorization rules, eligibility for opening branches, and compliance requirements.
**Action Required:**
Need to understand and implement the new directives for branch expansion and adhere to updated regulations.
**Stakeholder:** Reserve Bank of India (RBI)
**Impact:**
The RBI is the issuing authority and responsible for enforcement of these directions.
**Action Required:**
Ensure communication and compliance of NBFCs and HFCs with the new directions.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026: The primary subject of the document, these are the amendment directions regarding branch authorisation for non-banking financial companies.
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025: The 'Master Directions' which the 2026 Amendment Directions amend.
Reserve Bank of India Act, 1934: The Act that empowers the Reserve Bank of India, and is referenced in the context of the amendment directions.
Reserve Bank of India: The central bank of India, the regulator issuing the 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