Driven by excellence, focused on strategies for the longer term.

This is the crux of who we are. It is an articulation of precision in purpose, from the Firm’s beginnings to where we are today. Our collective eye is unerringly trained on tomorrow.

Deep sectoral expertise across services and industries.

Our insistence on strategic advisory exacts an in-depth understanding of and involvement with our clients’ businesses and industries. We engage not just individual businesses, but also contribute to the country’s legal and regulatory frameworks.

Personal commitment supported by experience and grit.

We commit early. We pull together internally for greater support. Every effort is sincere, every individual deeply dedicated to their task, their role, to the Firm.

Our undertakings for long-term impact are an organic extension of our purpose.

They are to employ our deep knowledge of the law beyond the business, the transaction, the deal. To use the opportunities and skills we possess, to reflect on the culture we’re creating. Individually and collectively, these are our efforts to help shape the thinking of our future generations, and arm them with strategies for true, sustainable growth.

Knowledge-sharing is intrinsic to equity and inclusivity.

This is a repository of thought leadership, deep insights and strong viewpoints, legal and other news and events and how they impact the industry and our clients.

Relevance is critical to growth. It necessitates a firm that is dynamic and responsive.

Amplifying intrinsic talent, sharpening skills, expanding knowledge, is vital to leading. It defines every aspect of how our firm functions and transacts. This is how we create new benchmarks and set industry standards.

left arrow Jul 27, 2026

RBI Relaxes Registration Requirements for NBFCs

The RBI has relaxed compliance requirements for Non-Banking Financial Companies (‘NBFCs’), some of which are as follows:

  1. Reclassification of NBFCs: (a) Type I NBFC which is an NBFC not availing public funds (at present or in the future), having no customer interface (at present or in the future) and having an asset size of INR 1,000 crore (approx. USD 104.77 million) or above; (b) Type II NBFC which is an NBFC availing public funds (at present or in the future) and/or having customer interface (at present or in the future); and (c) Unregistered Type I NBFC which is an NBFC not availing public funds (at present or in the future), having no customer interface (at present or in the future) but having an asset size of less than INR 1,000 crore (approx. USD 104.77 million );
  2. Registration of NBFCs: Type I NBFCs and Type II NBFCs are required to hold a Certificate of Registration (‘CoR’) issued by the RBI. However, an Unregistered Type I NBFC is exempt from such requirement provided it passes an annual board resolution at the start of each financial year confirming it will neither access public funds nor maintain a customer interface during the relevant financial year;
  3. Overseas Investment: Unregistered Type I NBFC intending to undertake overseas investment in the financial services sector will be treated at par with a Type I NBFC requiring a CoR. Unregistered Type I NBFCs are prohibited from undertaking overseas investment in the non-financial sector;
  4. Group NBFCs: In case of multiple Unregistered Type I NBFCs in a ‘Group’, the asset size of all such Unregistered Type I NBFCs will be aggregated and if such aggregate asset size is INR 1,000 crore (approx. USD 104.77 million) or above, all such Unregistered Type I NBFCs in the Group are required to register as Type I NBFCs with the RBI;
  5. Deregistration: A limited time deregistration window is available for existing NBFCs with a CoR which would otherwise be re-classified now as an Unregistered Type I NBFC; and
  6. Indirect Public Funds: RBI has now clarified that ‘access to public funds’ includes indirect receipt of public funds e., funds received not directly but through associates and group entities which have access to public funds.

TAGS

SHARE

Subscribe

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

RELATED READING

Inter Alia

SC Holds that Granting Interim Reliefs to Unsuccessful Party in Arbitration Should be Done Only in Rare and Compelling Cases
Jul 27, 2026 | Dispute Resolution
Inter Alia

Notification of Section 3(1) and Section 3(6) of Telecommunications Act, 2023, and Operative Rule
Jul 27, 2026 | Technology Media and Telecommunication
Inter Alia

Mechanism for Lock-in of Pre-Issue Capital and Pledged Shares During Initial Public Offering
Jul 27, 2026 | Capital Markets Regulatory & Securities