Rules / regulations / directions
NBFC Registration, Exemptions and Scale Based Regulation — current framework
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Reserve Bank of India - current registration, exemption and scale-based classification framework for NBFCs; existing Finin2min route retained.
Scope, legal role and applicability
Current NBFC entry/classification framework. It links the Section 45IA certificate-of-registration perimeter to exemptions and the Scale Based Regulation architecture used to determine the regulatory layer in which an NBFC sits.
Operative requirements
- Confirm first that the entity carries on “financial activity” and falls within the NBFC perimeter before testing registration or exemption.
- Check whether a certificate of registration under Section 45IA is required and whether any class exemption applies; preserve the exact exemption paragraph.
- Determine the applicable regulatory layer—Base, Middle, Upper or Top—using the current definitions, asset thresholds and RBI identification methodology.
- For group structures, test the directions on aggregation/classification rather than viewing each NBFC in isolation where the framework requires group treatment.
- Track transition obligations if an NBFC moves into a higher layer; layer movement can trigger additional governance, prudential, disclosure and supervisory requirements.
- Do not equate Section 45IA “net owned fund” with a generic Companies Act net-worth measure; calculate it under the statutory Explanation and the current RBI framework.
Records, forms and annexures
Keep the CoR/application and RBI portal trail, exemption evidence, audited financial statements, NOF computation, group-structure chart, layer classification memo and any RBI communication changing classification.
Practical advisory example
Facts and issue. A finance company has grown rapidly and a sister NBFC also has material assets. The review must first confirm registration status, then apply the group/layer rules and document whether Middle- or Upper-Layer obligations are triggered rather than relying on the last standalone balance sheet alone.
Working method. Classify the entity/product, identify the exact paragraph in force on the event date, test exceptions and transitional provisions, then retain the evidence listed above. Do not rely on the title of the Direction or an old Master Direction version.
RBI Act / cross-law linkage
Official source and version control
Questions and answers
What is the main purpose of NBFC Registration, Exemptions and Scale Based Regulation — current framework?
Reserve Bank of India - current registration, exemption and scale-based classification framework for NBFCs; existing Finin2min route retained.
Which part of NBFC Registration, Exemptions and Scale Based Regulation — current framework should be checked first?
Start with certificate-of-registration perimeter and exemptions and then apply this requirement: First classify the entity under Sections 45H/45I and Section 45IA.
What record should be retained?
Use RBI's current application/reporting portals and annexures identified in the Direction for the entity category; do not substitute a generic web form.
Does this page treat the RBI Act as the only enabling law?
No. Current operating framework is the RBI (NBFC – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025, amended in 2026; this existing Finin2min URL is retained.