**Executive Summary**
This document outlines the Reserve Bank of India's (RBI) Amendment Directions, 2026, regarding Non-Banking Financial Companies (NBFCs) Branch Authorisation. It amends the "Master Directions" issued on November 28, 2025, to provide operational flexibility to NBFCs for branch expansion while ensuring compliance. These Amendment Directions take effect immediately.
**Key Points / Main Content**
* **Amendment Scope:** This document amends the "Reserve Bank of India (Non-Banking Financial Companies - Branch Authorisation) Directions, 2025."
* **Applicability of Directions:**
* Paragraphs 5 and 12 of the Master Direction apply to deposit-taking NBFCs registered with the RBI and deposit-taking HFCs registered with the RBI.
* Paragraphs 13 to 15 apply to CIC registered with the RBI.
* Paragraphs 6, 10 to 11, and 13 to 15 apply to specified categories of NBFCs: HFCs, NBFC-D, NBFC-ICC, NBFC-Factor, NBFC-MFI, NBFC-IFC and IDF-NBFC.
* **Changes to Master Directions:**
* Subsection A1 of the Master Direction is replaced with: "Opening of Branches in India."
* Paragraph 6 of the Master Direction is replaced with a statement that NBFCs generally do not need prior RBI approval to open branches unless specifically restricted.
* 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:** NBFCs will have more operational flexibility in branch expansion, and may not require prior RBI approval to open branches unless specifically restricted.
* **Action Required:** NBFCs need to be aware of the revised guidelines to comply with the branch authorization process.
**Stakeholder: Reserve Bank of India (RBI)**
* **Impact:** These amendments will allow the RBI to provide operational flexibility to the NBFCs for branch expansion.
* **Action Required:** Enforce and oversee compliance 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, outlining amendments to branch authorization for Non-Banking Financial Companies.
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025: The 'Master Directions' that are being amended by the 2026 Amendment Directions.
Reserve Bank of India Act, 1934: The act that confers powers to the Reserve Bank of India.
Reserve Bank of India: The central bank of India, which is issuing the amendment directions.
National Housing Bank Act, 1987: Act that confers powers related to housing finance to the Reserve Bank of India.
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