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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues Updated Master Direction on Reserve Bank of India (Non-Banking Financial Company: Scale Based Regulation) Directions, 2023

17-Jul-2025 | NA

Reserve Bank of India (RBI) has issued updated Reserve Bank of India (Non-Banking Financial Company: Scale Based Regulation) Directions, 2023, effective from 17th July 2025. As a result of this update, guidelines on gold collateral, pre-payment of charges on loans and digital lending have been revised with respect to new directions for all these compliances listed below: 1. For loans (including term and demand loans) sanctioned or renewed on or after January 1, 2026, NBFCs must follow the RBI (Pre-payment Charges on Loans) Directions, 2025 issued on July 2, 2025, and any updates to it. 2. NBFCs must also follow the RBI (Lending Against Gold and Silver Collateral) Directions, 2025 issued on June 6, 2025, and any amendments, as soon as possible but no later than April 1, 2026. 3. Digital Lending Guidelines: NBFCs must follow the instructions in the RBI (Digital Lending) Directions, 2025, dated May 8, 2025, including any changes (reference to para 4.1.8). 4. Default Loss Guarantee (DLG) in Digital Lending: NBFCs must comply with the relevant instructions in the same RBI (Digital Lending) Directions, 2025 (reference to para 4.1.8). 5. Loans Sourced via Digital Lending Platforms: NBFCs must follow the Fair Practices Code and Outsourcing Guidelines as outlined in the RBI (Digital Lending) Directions, 2025 (reference to para 4.1.8). For more detailed information, please refer to the attached Master Direction.

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