SM India Newsflash - RBI Introduces New Registration and Exemption Framework for NBFCs

Please find attached our Newsflash on ‘RBI Introduces New Registration and Exemption Framework for NBFCs’.

The Reserve Bank of India (‘RBI’) has revised the regulatory framework for NBFCs not availing public funds and not having any customer interface, effective from 1 July 2026. The revised framework introduces the concept of an Unregistered Type I NBFC and provides an exemption from RBI registration for eligible NBFCs having asset size below Rs. 1,000 Crores, subject to prescribed conditions by 31 December 2026. Existing eligible NBFCs may also apply for deregistration.

Our attached Newsflash summarises certain key aspects of the revised framework, including:

•    Exemption framework based on the asset size threshold and other conditions
•    Deregistration framework for existing eligible NBFCs

The revised framework may be particularly relevant for investment / holding companies and Groups having NBFC entities. Such entities may consider and evaluate their existing registration status, asset size, funding arrangements, need for continuing the NBFC registration and intra-group activities to assess eligibility for the revised exemption framework and any consequential registration / deregistration requirements.

Click here to download-SM India Newsflash - RBI Introduces New Registration and Exemption Framework for NBFCs