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

Reserve Bank of India (Non-Banking Financial Companies - Branch Authorisation) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/342 DOR.RAUG.REC.No.261/23-27-013/2025-26

RBI has issued Reserve Bank of India (Non-Banking Financial Companies - Branch Authorisation) Directions, 2025, effective from 28th Nov 2025. Applicability: These Directions apply to All NBFCs (deposit-taking and non-deposit-taking) and Housing Finance Companies (HFCs). They govern: Opening of branches, Closing of branches, Opening of overseas representative offices, and Opening of overseas branches. Key Highlights: - Branch Opening Conditions Rationalised Deposit-taking NBFCs may now open branches based on NOF and credit rating thresholds: a. NBFCs with NOF above Rupees 50 crore and AA rating or higher may expand across India. b. NBFCs with lower NOF or rating are restricted to branch expansion within the registered office state. c. All applications must be routed through the PRAVAAH portal, and may proceed if RBI does not object within 30 days. - Restrictions on HFCs and NBFC-ICC (Gold Loan Companies): a. HFCs must provide prior intimation to NHB and are barred from opening foreign branches. b. Gold loan NBFCs require prior RBI approval to exceed 1,000 branches, and must ensure compliant gold storage and security facilities. - NBFCs are not permitted to open new branches overseas. a. Existing branches may continue under strict compliance with RBI's financial services regulations. b. Representative offices abroad may be opened only with prior RBI approval, and may conduct only liaison or research activities, with no credit lines or financial transactions permitted. - Branch Closure Procedures: a. NBFCs must issue a three-month public notice before closing any branch and ensure continuity of depositor/customer servicing. Deposit-taking NBFCs must notify the RBI accordingly. For more information, kindly refer to the attached document.

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