Post by Aurtus Consulting LLP

#RBI Relaxes #NBFC Registration Requirement - A Welcome Move for #Investment #Holding Companies. The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies - Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026, effective 1 July 2026. Through these amendments, the RBI has introduced the concept of 'Unregistered Type I NBFCs', exempting #NBFCs that do not access public funds, do not have a customer interface, and have an asset size below INR 1,000 crore from the mandatory registration requirement under Section 45-IA of the RBI Act, 1934. This is a welcome development for #familyowned and #promoter group structures that hold investment companies qualifying as NBFCs under the 50-50 test solely by virtue of holding financial assets, despite having no external borrowings, no public deposits, and no lending activity. The exemption offers a meaningful reduction in compliance burden for such entities. Key #highlights: - Exemption from registration for eligible NBFCs classified as 'Unregistered Type I NBFCs' - Expanded definition of 'public funds' which now includes indirect receipt through associates and group entities having access to public funds - Group-level aggregation of asset size of all ‘Unregistered Type I NBFCs’ within a group - Deregistration window for existing eligible NBFCs Our detailed alert is enclosed. #RBI #NBFC #RegulatoryUpdate #Aurtus Aurtus Consulting LLP | Vishal Gada | Rutul Shah | Zeel Jambuwala | Jay Parmar | Ritesh Kanodia | Meetika Baghel