The draft proposes a significant change in regulatory framework by dispensing with the requirement of prior approval or intimation for opening branches in India by NBFCs, reflecting a move toward greater operational flexibility. It clarifies applicability across NBFC layers and categories, revises provisions governing branch operations, and deletes earlier sections that mandated approvals and detailed procedures for branch opening and closure. The comments/ feedback from stakeholders is invited.
(Link: RBI Draft Amendments dated 06/02/2026, Press Release)