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

RBI updates RBI (Non-Operative Financial Holding Company) Directions, 2025

05-Dec-2025 | RBI/DoR/2025-26/372 DoR.LIC.REC.No.291/16.13.218/2025-26

RBI has updated RBI (Non-Operative Financial Holding Company) Directions, 2025. Key Highlights: 1. Replacement of paragraphs 44-47 under Chapter V - Non-Permitted Activities of an NOFHC including activities allowed to banks under Section 6(1)(a)-(o) of the Banking Regulation Act must be carried out only by the bank, not by group entities. 2. Specialised activities (mutual funds, insurance, pension fund management, investment advisory/management, PMS, broking) must be carried out through subsidiaries/JVs/associates, and: a. No RBI approval needed, but NOFHC must inform RBI within 15 days of board approval. b. For any other business, prior RBI approval is required. c. Group entities cannot undertake any activity that the bank itself is not permitted to do. For more information, please refer to the attached document.

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