National

RBI Eases Rules For Small Lenders: What Borrowers And Businesses Should Check Next

The Reserve Bank has relaxed registration rules for a narrow group of small finance companies, but borrowers and businesses should know what has changed, and what has not. The Reserve Bank of India has eased rules for a specific category of small non-banking finance companies. These are companies with assets below ₹1,000 crore, no public funds, and no customer interface. From July 1, 2026, they will be exempt from registration and reserve-fund requirements under Sections 45IA and 45IC of the RBI Act. Existing eligible entities can apply for deregistration by December 31, 2026. That sounds technical, and yes, it is. But the layperson’s translation is simpler: RBI is reducing paperwork for small finance firms that do not raise public money and do not deal directly with customers. Why RBI Is Doing This   The change follows a review of the regulatory framework for companies that neither use public funds nor ...

Devyani
  • 2 days ago
  • 3 minutes read
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