RBI may exempt small, low-risk NBFCs from registration
The Reserve Bank of India just announced that some non-banking financial companies (NBFCs)—specifically those with no public funds, no direct customers, and assets under ₹1,000 crore—may be exempted from registration with the RBI, subject to certain specified conditions.
RBI Governor Sanjay Malhotra shared that draft guidelines will be out soon for feedback.
Why this matters
This move cuts red tape for small, low-risk NBFCs so they can focus on growing and serving niche markets—especially in areas that often get overlooked.
The RBI is also making it easier for certain NBFCs (like gold lenders) to open more branches without jumping through extra hoops.
It's all part of a bigger plan to help businesses grow while keeping India's financial system steady and safe.