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Is Your NBFC Aligned with the Latest RBI Updates

  • 08-Aug-2025
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Is Your NBFC Aligned with the Latest RBI Updates?

The Reserve Bank of India (RBI) is taking decisive steps to tighten the compliance framework for Non-Banking Financial Companies (NBFCs), ensuring transparency, customer protection, and responsible lending practices. Whether you’re a traditional NBFC or a fintech-backed lender, aligning with these changes is no longer optional—it’s critical.

1. Closer Scrutiny of NBFC–Fintech Partnerships

RBI has increased its audit focus on NBFCs working with fintech loan service providers (LSPs). This includes a deep check on KYC protocols, data protection measures, and compliance with digital lending guidelines. NBFCs must ensure partner platforms follow the same regulatory rigor as their own operations.

2. Penalties for Non-Compliance

In recent months, four NBFCs faced penalties totaling ₹76.6 lakh for violating peer-to-peer (P2P) lending norms. Common violations included disbursing loans without lender consent and failing to disclose borrower risk profiles. The message is clear—non-compliance is costly.

3. Easing of Rules for NBFC-MFIs

Good news for microfinance institutions—RBI has reduced the qualifying asset requirement from 75% to 60%. This flexibility allows NBFC-MFIs to diversify their portfolios and expand access to underserved borrowers, especially in rural and semi-urban areas.

4. Stricter Digital Lending Norms

Past misuse by unregulated digital lenders has pushed RBI to tighten data security and fair lending standards. NBFCs using online lending channels must ensure transparent terms, clear consent protocols, and strong cyber safeguards.

5. Reporting & Framework Shifts

RBI’s revised compliance roadmap includes:

  • Net Owned Funds (NOF) to be at least ₹10 crore by March 2027

  • Mandatory filing of NBS-1, NBS-2, ALM reports, and auditor certificates

  • XBRL-based reporting for better data accuracy and regulatory tracking

How NBFC Advisor Can Help

At NBFC Advisor, we help you stay compliant, reduce risks, and prepare for inspections. Our expertise includes:

  • RBI & ROC Filings

  • KYC/AML Implementation

  • CRILC & CIC Reporting

  • Governance & Audit Readiness

  • Digital Lending Compliance Support

📌 Contact us today for a free consultation
📞 +91 93113 47006

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