costs for smaller entities.
Industry experts have welcomed the move. Deepak Shenoy, CEO of Capitalmind AMC, called it a major reform, saying it removes restrictions that earlier limited the creation of investment-only companies.
Easier Branch Expansion for Gold Loan NBFCs
The RBI has also announced plans to relax branch expansion rules for NBFCs involved in gold loan businesses.
These NBFCs will no longer need prior RBI approval to open new branches, even if they already operate more than 1,000 branches.
According to the RBI, such NBFCs pose low systemic risk, making strict expansion controls unnecessary.
This change is expected to help companies grow faster and serve more customers.
Vinay Pai of Equirus Group said the move would improve ease of doing business and encourage stronger competition in the NBFC sector.
Strong Financial Health of NBFCs
The RBI also shared data showing that NBFCs remain financially stable.
As of September 2025, the sector’s Capital to Risk-Weighted Assets Ratio stood at 25.11 percent, well above regulatory requirements.
Tier-I capital was also strong at 23.27 percent.
Asset quality has improved too. Gross NPAs fell to 2.21 percent from 2.57 percent a year earlier, while Net NPAs declined to 0.99 percent.
Although returns dipped slightly, overall financial strength remains solid.
Why This Move Is Important
These regulatory changes reflect the RBI’s balanced approach of supporting growth while managing risk.
By easing rules for low-risk NBFCs and improving operational flexibility, the central bank is helping the sector expand responsibly and contribute more effectively to the economy.
