What changed
The RBI has amended the Master Direction to revise regulations governing agency business, including definitions and requirements for NBFCs. The amendments also consolidate customer service and conduct aspects in a separate direction. The changes will come into effect on January 01, 2027.
What it means for you
The amendments aim to enhance regulatory clarity and oversight of NBFCs' agency business activities. The changes may impact NBFCs' business models, particularly those involved in insurance distribution and other financial services. Banks and lenders may need to reassess their partnerships and agreements with NBFCs.
What you must do
- Review existing agency business arrangements
- Assess compliance with revised regulations
- Update agreements with third-party product and service providers
Who it affects
NBFCs, Banks, Insurance companies, Financial service providers
What are the key changes to the NBFC directions?
The amendments revise regulations governing agency business, including definitions and requirements for NBFCs.
When will the changes come into effect?
The changes will come into effect on January 01, 2027.
How will the amendments impact NBFCs' business models?
The amendments may impact NBFCs' business models, particularly those involved in insurance distribution and other financial services.