RBI Proposes Exemption for Small NBFCs from Section 45-IA Registration

Press Release: 2025-2026/2084, Dated: 10.02.2026

The Reserve Bank of India (RBI) has notified the Draft Amendment Directions to the Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale-Based Regulation Directions, 2026 and invited public comments on the proposed changes.

1. Proposed Exemption from Section 45IA of the RBI Act, 1934

Under the draft amendment, certain categories of NBFCs are proposed to be exempt from the provisions of Section 45IA of the RBI Act, 1934, which governs the requirement of registration with RBI and minimum net owned fund criteria.

The exemption is proposed for NBFCs that meet all of the following conditions:

• Do not avail public funds
• Have no customer interface
• Have an asset size of less than ₹1,000 crore

2. Regulatory Rationale

The proposed exemption reflects RBI’s evolving scale-based regulatory approach, which seeks to:

• Align regulatory intensity with risk profile and systemic importance
• Reduce compliance burden for smaller, low-risk NBFCs
• Focus supervisory attention on entities with higher public interface and systemic exposure

This move is consistent with RBI’s broader objective of promoting ease of doing business while maintaining financial stability.

3. Public Consultation

Stakeholders, regulated entities, and market participants are invited to submit their comments on the draft directions.

• Last date for submission of comments – 4 March 2026

Feedback received will be considered before finalisation of the amendment.

4. Key Takeaway

If implemented, the amendment will provide regulatory relief to smaller NBFCs that operate without public funds and customer interface, while continuing to subject larger and systemically relevant NBFCs to the full registration and regulatory framework under Section 45IA.

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