RBI proposes to ease registration for small NBFCs
The Reserve Bank of India (RBI) wants to make life easier for some NBFCs classified as Type 1—those that do not avail public funds and do not have a customer interface;
under the proposal, NBFCs with assets under ₹1,000 crore would be exempt.
RBI Governor Sanjay Malhotra announced this move on February 6, aiming to cut down on paperwork and red tape.
What does this mean for smaller NBFCs?
If this goes through (feedback is open till March 4, 2026), these smaller NBFCs could skip the usual registration hassle—though they'll still need to prove they're playing by the rules.
This means less compliance stress for genuine small players, while RBI keeps the power to step in if things go wrong.
It's all part of a smarter, risk-based approach after past financial crises—and should help honest businesses focus more on growth than bureaucracy.