The amendment introduces clear categorisation of NBFCs into Type I (not availing public funds and without customer interface) and Type II entities, along with recognition of ‘Unregistered Type I NBFCs’. NBFCs meeting specified conditions,, such as asset size below Rs 1,000 crore, no public funds, and no customer interface, are exempted from registration requirements under Sections 45IA and 45IC, with an option for voluntary deregistration. The framework mandates strict disclosures, board resolutions, and auditor certifications to ensure compliance. Entities exceeding thresholds or changing business models must seek registration.