The Reserve Bank of India (RBI) on February 27, 2025, updated Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023.
The Reserve Bank of India (RBI), in the public interest and to regulate the financial system effectively, has issued the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023.
These directions have been issued under the Reserve Bank of India Act, 1934 and the Factoring Regulation Act, 2011 to prevent mismanagement of NBFCs, protect investors and depositors, and ensure financial stability.
The new framework supersedes the earlier NBFC–Non-Systemically Important Non-Deposit Taking Directions, 2016, and NBFC–Systemically Important Non-Deposit Taking & Deposit Taking Directions, 2016, introducing a scale-based regulatory structure for NBFCs based on their size, activity, and risk exposure.
[Notification No. RBI/DoR/2023-24/106]
