**Executive Summary**
This document outlines the Reserve Bank of India's (RBI) Amendment Directions, 2025, concerning Non-Banking Financial Companies (NBFCs) undertaking financial services. Effective December 05, 2025, these directions modify the existing "Master Direction" and introduce guidelines for NBFCs that are group entities of Scheduled Commercial Banks. The document addresses feedback and consultations with stakeholders.
**Key Points / Main Content**
* **General Information**
* These directions are called the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) (Amendment) Directions, 2025.
* Effective date: December 05, 2025.
* These amendment directions modify the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 (referred to as "Master Direction").
* **Guidelines for NBFC Group Entities of Scheduled Commercial Banks**
* After paragraph 60 of the Master Direction, a new section "H. Guidelines for NBFC Group entities of Scheduled Commercial Banks" is added.
* NBFCs which are group entities of a Scheduled Commercial Bank should adhere to the applicable provisions stipulated under Reserve Bank of India (Commercial Banks – Undertaking of financial services) Directions, 2025, updated from time to time.
* The guidelines apply when a particular business/activity is undertaken by both the NBFC and its parent bank.
**Impact Analysis**
**Stakeholder:** NBFCs (Non-Banking Financial Companies)
* **Impact**
* NBFCs, particularly those that are group entities of Scheduled Commercial Banks, are subject to revised guidelines.
* **Action Required**
* NBFCs, especially those that are part of a Scheduled Commercial Bank group, must adhere to the guidelines under the Reserve Bank of India (Commercial Banks – Undertaking of financial services) Directions, 2025.
* Compliance with these guidelines is necessary when the same business/activity is undertaken by both the NBFC and its parent bank.
**Stakeholder:** Scheduled Commercial Banks
* **Impact**
* Scheduled Commercial Banks with NBFC group entities are affected by the updated guidelines.
* **Action Required**
* Ensure that their NBFC group entities adhere to the applicable provisions under the Reserve Bank of India (Commercial Banks – Undertaking of financial services) Directions, 2025 when both the bank and the NBFC are engaged in the same business/activity.
Key Entities Referenced
Reserve Bank of India: India's central bank, the primary regulator in the context of these directions.
Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) (Amendment) Directions, 2025: The central policy document specifying regulations for NBFCs undertaking financial services.
Reserve Bank of India Act, 1934: The Act which confers powers to the Reserve Bank of India.
Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025: The Master Direction which is being amended by the current directions.
Reserve Bank of India (Commercial Banks – Undertaking of financial services) Directions, 2025: Directions pertaining to Commercial Banks which are also referenced in this policy.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/DOR/2025-26/138
DOR.RAUG.AUT.REC.No.343/24.01.041/2025-26 December 05, 2025
Reserve Bank of India (Non-Banking Financial Companies – Undertaking of
Financial Services) (Amendment) Directions, 2025
Reserve Bank had earlier issued directions on Financial Services provided by Banks
in 2016, since replaced by entity-wise Master Directions issued on November 28, 2025
- Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial
Services) Directions, 2025. A review of some provisions contained in the earlier
instructions was carried out and a draft circular was placed on the website on October
04, 2024.
2. Taking into account the feedback received and consultation held with the
stakeholders and in exercise of the powers conferred by Section 45(L) and Section
45(JA) under Chapter IIIB of the Reserve Bank of India Act, 1934, and all other laws
enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is
necessary and expedient in the public interest so to do, hereby issues the Amendment
Directions hereinafter specified.
3. These Directions shall be called the Reserve Bank of India (Non-Banking Financial
Companies – Undertaking of Financial Services) (Amendment) Directions, 2025.
4. The provisions shall come into effect from December 05, 2025.
5. These Amendment Directions modify the Reserve Bank of India (Non-Banking
Financial Companies - Undertaking of Financial Services) Directions,
2025 (hereinafter referred to as ‘Master Direction’) as under:
(i) After paragraph 60 of the Master Direction, the following shall be inserted:
“H. Guidelines for NBFC Group entities of Scheduled Commercial Banks:
60A. In addition to the above directions, those NBFCs which are group entities of a
Scheduled Commercial Bank should adhere to the applicable provisions stipulatedunder Reserve Bank of India (Commercial Banks – Undertaking of financial services)
Directions, 2025, updated from time to time, in case a particular business/activity is
being undertaking by both the NBFC as well as its parent bank. “
(Manoranjan Padhy)
Chief General Manager
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