The Reserve Bank of India has released the Draft Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026 for public comments and invited feedback from regulated entities and other interested stakeholders by 28 August 2026 through the “Connect 2 Regulate” platform or by email. The draft amendments propose inserting definitions of “revolving credit” and “term loan”, deleting paragraph 5(5) of the Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025, removing Part D – Demand/Call Loans from Chapter VIII, and introducing a new Part F – Restrictions on Revolving Credit Facilities. Under the proposed paragraph 108A, NBFCs would be permitted to offer only credit products in the nature of term loans and would not be allowed to offer revolving credit products. The proposed restriction would not apply to NBFCs authorised by the Reserve Bank to issue credit cards. The draft Amendment Directions state that the amendments would come into force immediately.
Reserve Bank of India
Date : Aug 06, 2026
RBI invites comments on the draft “Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026”
The Reserve Bank of India today released the draft “Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026”. Comments/feedback on the draft Amendment Directions are invited from regulated entities and other interested stakeholders by August 28, 2026.
Feedback on the draft Amendment Directions may be submitted through ‘Connect 2 Regulate’ or by email with subject line “Feedback on draft Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026”.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/825
Draft Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026
Draft for Comments
RBI/2026-27/__
DOR.STR.REC.__/21-07-001/2026-27 | Dated: __, 2026
Please refer to Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 dated November 28, 2025 (hereinafter referred to as the “Directions”).
2. In exercise of the powers conferred by the Chapter III B 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 Amendment Directions modify the Directions as under:
1) In paragraph 4 (1), the following sub-paragraphs shall be inserted:
“(xxv-a) “revolving credit” refers to any fund based credit facility, which does not meet the definition of a term loan.
(xxv-b) “term loan” refers to a fund based credit facility of a fixed principal amount, made available by an NBFC to a borrower with all of the following features:
(a) The sanctioned limit is disbursed in one or more instalments and is repayable in accordance with a predetermined amortization schedule, either as periodic instalments or as a bullet on the stated due date(s).
(b) Once disbursed, the sanctioned limit cannot be restored / replenished upon repayment of either the whole or a part of the principal amount.”
2) In Chapter II, paragraph 5 (5) shall be deleted.
3) In Chapter VIII – Other Regulatory Restrictions, Part D “Demand/ Call Loans” shall be deleted.
4) In Chapter VIII – Other Regulatory Restrictions, the following shall be inserted:
“F. Restrictions on revolving credit facilities
108A. NBFC shall only offer credit products which are in nature of term loans and shall not offer any revolving credit products.
Provided that, the aforesaid restriction shall not be applicable to an NBFC authorised by Reserve Bank to issue credit cards.”
4. The above amendments shall come into force immediately.
(Dr. Sudarsana Sahoo)
Chief General Manager
