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Informist, Friday, Jun. 6, 2025

--RBI Malhotra: Will review norms for type-I non bank financial companies 

--RBI Malhotra: Have issued a regulation making framework 

--RBI Malhotra: Will regularly review regulations, directions 

--RBI Malhotra: Regulation framework to have public consultation, impact study 

MUMBAI – The Reserve Bank of India has issued a regulation-making framework that will review the norms for type-I non-banking financial companies, or non-deposit taking ones, Governor Sanjay Malhotra said at the post-policy conference. The framework will be made available for public review "not only in letter but also in intent", he said. 

According to Malhotra, the framework would comprise three essential components, which include public consultations to understand the views of all the important stakeholders. Second, the RBI will carry out impact analysis to gauge the impact of the norms on the banking system, other regulated entities, customers, and all other stakeholders, he said. As it is often not possible to do a quantitative study every time, the analysis would be qualitative, Malhotra said.

The third element of the framework entails a regular review of the regulations, directions and policies with regard to type-I NBFCs, the governor said. "It is dynamic, policies have to change with times and so, it is only in that context that we are going to review some of the policies related to type-I NBFCs," Malhotra said. 

In its annual report for 2025-26 (Apr-Mar), the RBI said it plans to review the financial inclusion index and examine ways to enhance supervision of NBFCs, particularly those in the base layer. The RBI will also evaluate how well regulated entities were adhering to pricing norms to prevent excessive interest rates on loans.  End

Reported by Vidhushi RajPurohit

Edited by Avishek Dutta

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