Reserve Bank of India has released draft Non-Banking Financial Companies – Branch Authorisation Amendment Directions, 2026 and invited public comments till February 27, 2026. The draft proposes a significant shift in the regulatory framework by dispensing with the requirement of prior approval or intimation for opening branches in India by NBFCs, reflecting a move toward greater operational flexibility amid an evolving regulatory landscape. Consequential amendments are proposed to the NBFC Public Deposit Directions, 2025 and the Housing Finance Companies Directions, 2025. The draft clarifies applicability across NBFC layers and categories, revises provisions governing branch operations, and deletes earlier sections that mandated approvals and detailed procedures for branch opening and closure. While easing expansion norms, the framework retains necessary compliance safeguards. Stakeholders, including regulated entities and the public, may submit feedback through the regulator’s online portal or via email, before the amendments are finalised and brought into force.
RESERVE BANK OF INDIA
RBI invites public comments on the draft Amendment Directions on Non-Banking Financial Companies – Branch Authorisation Directions
The Reserve Bank had issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025 (hereafter referred as the ‘Master Directions’), on November 28, 2025, which inter alia prescribes regulations on opening and closure of branches of Non-Banking Financial Companies (NBFCs). As announced in the Governor’s Statement on February 06, 2026, the Reserve Bank has today published the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026. Consequently, relevant paragraphs of the Reserve Bank of India (Non-Banking Financial Companies – Acceptance of Public Deposits) Directions, 2025 and the Reserve Bank of India (Housing Finance Companies) Directions, 2025, shall be amended suitably.
The comments on the draft Amendment Directions are invited from the Regulated Entities, and other interested parties till February 27, 2026. The comments / feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section available on the Reserve Bank’s website or may alternatively be forwarded to
The Chief General Manager
Registration and Authorisation Group
Department of Regulation, Central Office
Reserve Bank of India, 12th Floor
Shahid Bhagat Singh Marg
Fort, Mumbai – 400 001
Or
by email
With the subject line ‘Feedback on Amendment to NBFC Branch Authorisation Directions’.
Background and Objective
The extant guidelines on opening and closure of branches of NBFCs are prescribed under the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025, applicable to various categories of NBFCs (including HFCs). Based on a comprehensive review and taking into consideration the evolving regulatory landscape, it has been decided to dispense with the requirement of prior approval/intimation for opening of branches in India by the NBFCs.
(Brij Raj)
Chief General Manager
Press Release: 2025-2026/2059
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RESERVE BANK OF INDIA
RBI/2025-26/
DOR.RAUG.REC.No.XXX /23-27-013/2025-26 | Dated: February 06, 2026
Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026 – Draft for Comments
The Reserve Bank had issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025 (hereafter referred as the ‘Master Directions’), on November 28, 2025, as amended from time to time. There is a need to further amend the same to provide operational flexibility to the NBFCs for branch expansion while ensuring necessary compliance.
2. Accordingly, in exercise of the powers conferred by Chapter IIIB of the Reserve Bank of India Act, 1934, and Sections 30A of the National Housing Bank Act, 1987 and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, the Reserve Bank having considered it necessary in the public interest, hereby, issues the following Amendment Directions.
3. These Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026.
4. These Amendment Directions shall come into force with immediate effect.
5. The Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025 are amended as provided below:
i) In paragraph 3 (1) of the Master Direction, the following shall be substituted:
3 (1) These Directions shall be applicable to the following Non-Banking Financial Companies (hereinafter collectively referred to as ‘NBFCs’ and individually as an ‘NBFC’), for all layers:
(i) The provisions contained in paragraphs 5 and 12 shall be applicable to deposit taking NBFCs registered with the RBI under the provisions of the RBI Act, 1934 and deposit taking HFCs registered with RBI under the provisions of the NHB Act, 1987;
(ii) The provisions contained in paragraphs 13 to 15 shall be applicable to CIC registered with the RBI under the provisions of the RBI Act, 1934;
(iii) The provisions contained in paragraphs 6, 10 to 11 and 13 to 15 shall be applicable to the following categories of NBFCs:
(a) HFCs registered with the RBI under the provisions of the NHB Act, 1987;
(b) NBFC-D registered with the RBI under the provisions of the RBI Act, 1934;
(c) NBFC-ICC registered with the RBI under the provisions of the RBI Act, 1934;
(d) NBFC-Factor registered with the RBI under the provisions of the Factoring Regulation Act, 2011;
(e) NBFC-MFI registered with the RBI under the provisions of the RBI Act, 1934;
(f) NBFC-IFC registered with the RBI under the provisions of the RBI Act, 1934;
(g) IDF-NBFC registered with the RBI under the provisions of the RBI Act, 1934;
ii) In subsection A1 of the Master Direction, the following shall be substituted: “Opening of Branches in India.”
iii) In paragraph 6 of the Master Direction, the following shall be substituted: “An NBFC is generally permitted to open branches without having the need to obtain prior approval from RBI, unless otherwise specifically restricted.”
iv) Subsections A2 and A3 including paragraphs 7, 8 and 9 of the Master Direction shall stand deleted.
Yours faithfully,
Chief General Manager
