RBI Amendments Report – 15th April 2026 | NBFC – Branch Authorisation

A. Exemption from Prior RBI Approval for Branch Opening

Specific Change: To provide operational flexibility, general NBFCs are now permitted to open branches without the need to obtain prior approval from the RBI, unless specifically restricted by other criteria.

Management Action Plan:

• Strategy & Operations: Revise the annual branch expansion strategy. Fast-track the real estate acquisition and lease signing process for new branches, as the regulatory wait time is eliminated.
• Legal & Compliance: Update internal Standard Operating Procedures (SOPs) and Board manuals to reflect the removal of the prior-approval prerequisite.
• Board Approval: Ensure internal Board/Committee limits and approvals for capital expenditure on new branches are reinforced, as RBI’s upfront vetting is no longer a gatekeeper.

B. Realignment of Applicability Criteria (Paragraph 3)

Specific Change: Based on stakeholder feedback, Paragraph 3(1) has been restructured. The regulations now distinctly sequence the general requirements applicable to all NBFCs before laying out the stringent, specific restrictions applicable to Deposit-Taking NBFCs (NBFC-D) (which are subject to Net Owned Funds and Credit Rating restrictions).

Management Action Plan:

• Compliance Mapping: The Compliance team must re-map internal compliance checklists to align with the new structural flow of Paragraph 3(1).
• Deposit-Taking Entities: If the entity is an NBFC-D, immediately assess current Net Owned Funds (NOF) and latest credit ratings to ensure planned branch locations do not violate the specific geographic restrictions maintained for deposit-taking entities.
• Policy Update: Update cross-references in the company’s internal “Acceptance of Public Deposits” manual to match the newly amended RBI 2025 Directions.

C. Maintenance of Existing Regulations (Feedback Clarifications)

Specific Change: The RBI explicitly rejected feedback requesting relaxation on branch closures and additional rules. Mandatory notice periods and newspaper advertisements for closing branches remain in force. Furthermore, branch reporting via the CIMS portal and gold loan security norms (RBC Directions, 2025) remain unchanged and strictly applicable.

Management Action Plan:

• Closure Protocol: Issue a strict memo to Regional Heads reiterating that the “ease of doing business” applies to opening branches, not closing them. The standard mandatory notice periods and public newspaper advertisements must be executed prior to any branch shutdown.
• IT & Reporting: Ensure that the IT systems are configured to immediately report all newly opened branches into the RBI’s CIMS portal via standard supervisory returns within the prescribed timelines.
• Security Audit (Gold Loans): For NBFCs in the gold loan segment, schedule an immediate physical security audit against the “Responsible Business Conduct Directions, 2025” to ensure compliance, as RBI will continue rigorous supervisory oversight in this area.