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RBI exempts small NBFCs from registration and reserve fund requirements
The Reserve Bank of India announced that non-deposit taking NBFCs with assets under ₹1,000 crore that do not take public funds will be exempt from registration and reserve fund requirements, effective from July 1, 2026. The circular reducing compliance requirements was issued on April 29, 2026 and published on April 30, 2026.
Why It Matters
This moves reduces regulatory burden on small NBFCs, potentially impacting their operations and oversight for regulators.
Timeline
2 Events
Exemption becomes effective for eligible NBFCs from July 1, 2026
April 30, 2026
The exemption from registration and reserve fund requirements for such NBFCs becomes effective from July 1, 2026.
RBI issues circular exempting small NBFCs from registration and reserve fund requirements
April 29, 2026
The Reserve Bank of India issued a circular reducing compliance requirements for non-deposit taking NBFCs with assets under ₹1,000 crore that do not avail public funds, exempting them from registration and reserve fund requirements from July 1, 2026.