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Priority review Rule Amended Final

RBI Issues Amendment Directions on NBFC Branch Authorisation

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Summary

The Reserve Bank of India has issued the RBI (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026, effective April 15, 2026. The amendments modify extant guidelines on branch opening for various categories of NBFCs including Housing Finance Companies. The directions also update relevant provisions in the NBFC Acceptance of Public Deposits Directions, 2025 and Housing Finance Companies Directions, 2025.

What changed

The RBI has issued final Amendment Directions modifying the Non-Banking Financial Companies – Branch Authorisation Directions. The amendments incorporate feedback from the draft directions published in January 2026 and provide operational flexibility to NBFCs for branch expansion while maintaining regulatory compliance. Relevant provisions in the NBFC Acceptance of Public Deposits Directions, 2025 and Housing Finance Companies Directions, 2025 have also been updated.

Affected parties including all categories of NBFCs and Housing Finance Companies should review the final Amendment Directions and associated annexes to understand the modified branch opening requirements and ensure timely compliance with the updated regulatory framework.

What to do next

  1. NBFCs must review updated branch authorisation requirements
  2. NBFCs must ensure compliance with amended directions for branch expansion
  3. NBFCs should consult the final Amendment Directions for specific regulatory changes

Archived snapshot

Apr 16, 2026

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Press Releases

| () | |
| Date : Apr 15, 2026 | |
| RBI issues Amendment Directions on ‘Non-Banking Financial Companies – Branch Authorisation Directions’ | |
| | The Reserve Bank had issued the draft Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026, seeking comments from NBFCs and other stakeholders till February 27, 2026. The draft instructions proposed to modify the extant guidelines on opening of branches as applicable to various categories of NBFCs (including HFCs).

  1. Feedback received on the draft instructions has been examined and consequent modifications have been suitably incorporated in the final Amendment Directions. Statement on the feedback received on the draft instructions is provided in the Annex.

  2. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026 to amend the extant instructions relating to opening of branches by NBFCs. Consequently, relevant paragraphs of the Reserve Bank of India (Non-Banking Financial Companies - Acceptance of Public Deposits) Directions, 2025 and the Reserve Bank of India (Housing Finance Companies) Directions, 2025, have also been suitably updated.

  3. The objective of these Amendment Directions is to provide operational flexibility to NBFCs for branch expansion to facilitate ease of doing business while ensuring necessary regulatory compliance.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/87 | | The Reserve Bank had issued the draft Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026, seeking comments from NBFCs and other stakeholders till February 27, 2026. The draft instructions proposed to modify the extant guidelines on opening of branches as applicable to various categories of NBFCs (including HFCs).

  1. Feedback received on the draft instructions has been examined and consequent modifications have been suitably incorporated in the final Amendment Directions. Statement on the feedback received on the draft instructions is provided in the Annex.

  2. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026 to amend the extant instructions relating to opening of branches by NBFCs. Consequently, relevant paragraphs of the Reserve Bank of India (Non-Banking Financial Companies - Acceptance of Public Deposits) Directions, 2025 and the Reserve Bank of India (Housing Finance Companies) Directions, 2025, have also been suitably updated.

  3. The objective of these Amendment Directions is to provide operational flexibility to NBFCs for branch expansion to facilitate ease of doing business while ensuring necessary regulatory compliance.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/87 |
| The Reserve Bank had issued the draft Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026, seeking comments from NBFCs and other stakeholders till February 27, 2026. The draft instructions proposed to modify the extant guidelines on opening of branches as applicable to various categories of NBFCs (including HFCs).

  1. Feedback received on the draft instructions has been examined and consequent modifications have been suitably incorporated in the final Amendment Directions. Statement on the feedback received on the draft instructions is provided in the Annex.

  2. Accordingly, the Reserve Bank of India has today issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026 to amend the extant instructions relating to opening of branches by NBFCs. Consequently, relevant paragraphs of the Reserve Bank of India (Non-Banking Financial Companies - Acceptance of Public Deposits) Directions, 2025 and the Reserve Bank of India (Housing Finance Companies) Directions, 2025, have also been suitably updated.

  3. The objective of these Amendment Directions is to provide operational flexibility to NBFCs for branch expansion to facilitate ease of doing business while ensuring necessary regulatory compliance.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/87 | |

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Named provisions

Non-Banking Financial Companies – Branch Authorisation Acceptance of Public Deposits Directions Housing Finance Companies Directions

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Last updated

Classification

Agency
RBI
Published
April 15th, 2026
Instrument
Rule
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
Press Release: 2026-2027/87

Who this affects

Applies to
Banks Insurers Investors
Industry sector
5221 Commercial Banking
Activity scope
Branch authorisation NBFC operations Regulatory compliance
Geographic scope
IN IN

Taxonomy

Primary area
Banking
Operational domain
Compliance
Compliance frameworks
Basel III
Topics
Financial Services Consumer Finance

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