RBI Update - Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) (Amendment) Directions, 2025

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) (Amendment) Directions, 2025, effective December 5, 2025. These amendments follow stakeholder consultation and align the NBFC framework with the revised entity-wise Master Directions issued on November 28, 2025.

Key Update Introduced

The Amendment inserts a new Paragraph 60A under the Master Direction, establishing harmonised compliance requirements for NBFCs that are group entities of Scheduled Commercial Banks.

Key Provision (Para 60A):

NBFCs that form part of a Scheduled Commercial Bank’s group must comply with the relevant provisions of the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025, to the extent that the same business/activity is undertaken by both the NBFC and its parent bank.

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