<h1>RBI Updates NBFC Regulatory Framework: New Entry Norms, Classification, and Compliance Deadlines Announced for Better Oversight.</h1> The Reserve Bank of India (RBI) has revised the regulatory framework for Non-Banking Financial Companies (NBFCs) based on recommendations from a working group. Key changes include classifying NBFCs into registered and exempted categories, with registered NBFCs under RBI regulation. Exempted NBFCs are those with assets below specified thresholds and not accepting public funds. New entry norms require a minimum net owned fund and asset size for registration. Principal Business Criteria (PBC) have been redefined, requiring a significant portion of assets and income to be financial. Multiple NBFCs within a group will have their assets aggregated for regulatory purposes, and captive NBFCs must maintain higher Tier I capital. Existing NBFCs have specific timelines to comply with these new criteria.