The Reserve Bank had issued the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025 (hereafter referred as the ‘Master Directions’), on November 28, 2025, which inter alia prescribes regulations on opening and closure of branches of Non-Banking Financial Companies (NBFCs). As announced in the Governor’s Statement on February 06, 2026, the Reserve Bank has today published the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Amendment Directions, 2026. 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, shall be amended suitably.

The comments on the draft Amendment Directions are invited from the Regulated Entities, and other interested parties till February 27, 2026. The comments / feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section available on the Reserve Bank’s website or may alternatively be forwarded to

The Chief General Manager
Registration and Authorisation Group
Department of Regulation, Central Office
Reserve Bank of India, 12th Floor
Shahid Bhagat Singh Marg
Fort, Mumbai – 400 001
Or
by email

With the subject line ‘Feedback on Amendment to NBFC Branch Authorisation Directions’.

Background and Objective

The extant guidelines on opening and closure of branches of NBFCs are prescribed under the Reserve Bank of India (Non-Banking Financial Companies – Branch Authorisation) Directions, 2025, applicable to various categories of NBFCs (including HFCs). Based on a comprehensive review and taking into consideration the evolving regulatory landscape, it has been decided to dispense with the requirement of prior approval/intimation for opening of branches in India by the NBFCs.

(Brij Raj)           
Chief General Manager

RBI invites comments on draft amendment removing prior approval for NBFC branch openings in India. The Reserve Bank published Amendment Directions, 2026, removing the requirement of prior approval or intimation for NBFCs (including Housing Finance Companies) to open branches in India and inviting comments on the draft until February 27, 2026 via the 'Connect 2 Regulate' portal or by submission to the Registration and Authorisation Group; relevant provisions of the Directions on Acceptance of Public Deposits and Housing Finance Companies will be amended consequentially.