The Reserve Bank of India has announced an amendment regarding the identification of Non-Banking Financial Companies (NBFC-UL) and inclusion of government-owned entities in this classification.
Amendment Directions on NBFC-UL Identification
The Reserve Bank of India issued draft Amendment Directions aimed at revising the methodology for identifying Non-Banking Financial Companies in the Upper Layer (NBFC-UL). This proposal seeks to include government-owned NBFCs into the classification.
Stakeholders had until May 2026 to provide feedback on the amendments, which aim to promote transparency and efficiency within the NBFC sector. The revised methodology is anticipated to streamline supervision and foster a healthier financial environment.
Legal professionals and compliance officers in the financial sector should pay close attention to these amendments to navigate regulatory changes effectively and adapt to new compliance obligations.
Citations
- Amendment Directions (2026) RBI Press Release
