What changed
- New definitions for 'NBFC not availing public funds and not having any customer interface' and 'Type I NBFC' have been introduced.
- Exemptions for NBFCs not availing public funds and not having customer interface have been detailed in paragraph 65A of the Directions.
- Regulatory requirements for 'NBFCs not availing public funds and not having any customer interface' have been specified in Section A.1 of the Directions.
What it means for you
- Banks and lenders will need to identify and classify NBFCs based on the new definitions and exemptions.
- NBFCs not availing public funds and not having customer interface with asset size less than ₹1,000 crore will be exempt from provisions of sections 45IA and 45IC of the RBI Act, 1934, subject to conditions.
- Banks and lenders will need to ensure compliance with the new regulatory requirements for NBFCs not availing public funds and not having customer interface.
What you must do
- Review and update NBFC classification and exemption processes to reflect the new definitions and exemptions.
- Ensure compliance with the new regulatory requirements for NBFCs not availing public funds and not having customer interface.
- Update internal policies and procedures to reflect the changes in the Directions.
Who it affects
Banks and lenders, NBFCs not availing public funds and not having customer interface, Reserve Bank of India
What is the definition of 'NBFC not availing public funds and not having any customer interface'?
An NBFC registered with the Reserve Bank as Type I NBFC or otherwise, not accepting public funds and not intending to accept public funds in the future, and not having customer interface and not intending to have customer interface in the future.
What are the regulatory requirements for 'NBFCs not availing public funds and not having any customer interface'?
NBFCs with asset size less than ₹1,000 crore are exempted from provisions of sections 45IA and 45IC of the RBI Act, 1934, subject to conditions including application for deregistration by December 31, 2026.