In a landmark move to streamline regulations, the Reserve Bank of India (RBI) on November
28, 2025, consolidated over 9,000 circulars into a cohesive set of 35 Master Directions on
Non-Banking Financial Companies. This reorganisation is not just a clerical update; it
represents a paradigm shift toward transparency, governance, and the mitigation of systemic
risks.
For Non-Banking Financial Companies (NBFCs), “policy-driven governance” is no longer
optional – it is the bedrock of business operations. These RBI mandated policies ensure that
NBFCs operate with the same level of discipline as banks, reducing fraud and protecting the
end consumer.
Below is an overview of the critical policy frameworks every modern NBFC must now maintain.
At the heart of the 2025 Directions is the Responsible Business Conduct framework. This ensures that the interaction between the lender and the borrower is ethical and transparent.
Security starts with knowing who you are dealing with, both outside and inside the organization.
The RBI has tightened the rules on how NBFCs handle “bad loans” to ensure consistency and fairness.
NBFCs must ensure they do not run out of cash or take excessive risks with their own portfolios.
As NBFCs become digital-first, the risks shift toward the cloud and third-party vendors.
Reflecting global trends, the 2025 directions introduce a framework for “Green Finance.”
The 2025 Policy Framework marks the “coming of age” for NBFCs. By mandating these policies, the RBI is ensuring that NBFCs are not just “shadow banks” but robust, transparent institutions. Following these policies is not just about compliance. It is about building trust with stakeholders, from the smallest borrower to the largest investor.
To make rules simpler, clearer, and more consistent for all NBFCs.
To improve trust, stability, and responsible behaviour in the NBFC sector.
The FPC ensures that NBFCs treat customers fairly and provide clear information.
It is a system that allows customers to file complaints and get them resolved on time.
It helps NBFCs identify and manage risks so they can operate safely and smoothly.
It means lending money carefully after checking whether the borrower can repay.
To contribute a portion of their profits to social and community development.
KYC verifies customer identity to prevent fraud and illegal activities.
Yes. Your data can only be shared after you approve a consent artefact that clearly states what data is needed, why, and for how long.
They guide NBFCs to support environmentally friendly and sustainable projects.
