Big Relief for Small NBFCs: RBI Removes Registration Requirement for Low-Risk Entities

Last updated: 09 February 2026

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The Reserve Bank of India (RBI) has announced that certain low-risk Non-Banking Financial Companies (NBFCs) will no longer need to register with the central bank. This exemption applies to Type-I NBFCs with assets under Rs 1000 crore that do not access public funds or interact with customers. The move aims to reduce compliance burdens for smaller entities while maintaining financial stability, allowing them to focus more on core operations. Additionally, the RBI is proposing to remove prior approval requirements for branch expansion for NBFC-Investment and Credit Companies.

The Reserve Bank of India (RBI) on Friday announced that certain low-risk NBFCs will no longer be required to register with the central bank. The move is aimed at reducing compliance costs while maintaining overall financial stability. Under the revised framework, NBFCs that do not access public fu

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FAQ :

NBFCs classified as Type-I, with assets not exceeding Rs 1000 crore, that do not access public funds and have no customer interface are exempted.

The RBI aims to reduce compliance costs for low-risk entities and improve the ease of doing business, while maintaining overall financial stability.

NBFCs with an asset size not exceeding Rs 1000 crore are eligible for exemption.

The RBI has proposed removing the requirement for prior approval for branch expansion for NBFC-Investment and Credit Companies (NBFC-ICCs).

Stakeholders can submit comments and suggestions on the draft guidelines until February 27, 2026.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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Big Relief for Small NBFCs: RBI Removes Registration Requirement for Low-Risk Entities