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

Reserve Bank of India (Non-Banking Financial Companies - Acceptance of Public Deposits) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/346 DOR.FIN.REC.No.265/03.10.119/2025-26

RBI has issued Reserve Bank of India (Non-Banking Financial Companies - Acceptance of Public Deposits) Directions, 2025, effective from 28th Nov 2025. Applicability: The Directions apply to all NBFCs, including NBFC-D, NBFC-ICC, NBFC-Factor, NBFC-MFI, NBFC-IFC, IDF-NBFC, Housing Finance Companies (HFCs) (with paragraph-wise applicability), and NBFC-BL/ML/UL (layer-wise applicability). Key Highlights: - Only NBFCs with explicit RBI authorisation may accept public deposits. Investment-grade NBFCs with minimum NOF of ?25 lakh may accept deposits up to 1.5 times NOF, subject to rating and prudential compliance. Non-investment-grade NBFCs are prohibited from accepting public deposits. - NBFCs must comply with Minimum and maximum tenure (12-60 months), Credit rating from approved agencies, reviewed annually, Strict interest rate ceilings, Prohibition on incentives, brokerage beyond limits, and lottery-linked deposits, and Full repayment of deposits on maturity. - All advertisements and deposit application forms must prominently disclose Credit rating and validity, Financial position, Deposit limits, Auditor certification, Premature withdrawal rules, and Product risks. - Deposit-taking NBFCs must maintain: 15% liquid assets against deposit liabilities, Robust ALM policies, Adequate reserve fund balances, Strong governance and risk control systems, and Prohibition on lending against own debentures or shares. - Depositors must be offered clear nomination facilities, and NBFCs must adopt transparent processes for handling repayment, joint depositors, and transmission following the death of a depositor. For more information, kindly refer to the attached document.

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