RBI moots allowing NBFCs to open India branches without its prior approval
This story was originally published at 18:25 IST on 6 February 2026
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--RBI seeks comments on draft NBFCs branch authorisation norms by Feb 27
--RBI invites comments on draft NBFCs branch authorisation directions
MUMBAI – The Reserve Bank of India Friday issued draft amendment directions for non-banking financial companies' branch authorisation, under which it has proposed that a non-bank financial company be "generally permitted to open branches without having the need to obtain prior approval from RBI, unless otherwise specifically restricted."
As per non-banking financial companies – branch authorisation directions, 2025, a deposit-taking non-banking financial company is mandated to notify RBI of its intention to open the proposed branch. On receipt of such advice, RBI would accept or reject the proposal and communicate the same to the company. If no advice of rejection of the proposal is communicated by RBI within 30 days from the receipt of such advice, the non-bank lender can proceed with its proposal.
Further, the RBI has proposed that a non-banking financial company – investment and credit company engaged in lending against gold collateral be allowed to not obtain prior approval to open more than 1,000 branches. It has also proposed that a housing finance company be permitted to now open a branch outside India and also not be liable to inform the National Housing Bank in writing, of its intention to open a branch or an office. The central bank has sought comments on the draft directions by Feb. 27. End
Reported by Pratiksha
Edited by Deepshikha Bhardwaj
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