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RBI clamps down on small NBFC funding rules rejecting key industry pleas
Economy
Published on 29 April 2026
Group equity and related-party borrowings now count as public funds
The Reserve Bank of India has issued final directions for small NBFCs, turning down multiple requests from the industry. Key changes include treating equity investments in group entities as indirect public funds, classifying promoter and related-party borrowings as public funds, and viewing intra-group loans as customer interface. The RBI said these steps tighten compliance under existing norms.
- RBI rejected NBFC suggestions in final small NBFC directions
- Group equity will still be counted as indirect public funds
- Promoter and related-party borrowings now count as public funds
- Intra-group loans will be treated as customer interface
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times