The Reserve Bank of India has introduced amended guidelines regarding the responsible business conduct expected from Non-Banking Financial Companies following the recent regulatory review.
Responsible Business Conduct Directions Amendment for NBFCs
Effective August 6, 2026, the Reserve Bank of India has issued the Non-Banking Financial Companies - Responsible Business Conduct Third Amendment Directions, 2026. This amendment focuses on enhancing the engagement protocols with recovery agents employed by NBFCs, ensuring responsible lending practices.
The new directions include specific stipulations on how NBFCs must conduct their business with regard to client interactions and recovery processes, emphasizing the importance of ethical conduct and consumer rights in financial dealings.
These revised protocols were developed after a comprehensive review of existing guidelines, reflecting the RBI’s commitment to maintaining integrity within non-banking financial operations.
Practitioners involved with NBFCs and financial compliance should be aware of these changes, as they introduce significant adjustments to operational policies and compliance requirements for non-banking financial institutions.
Citations
- RBI Notification (2026) RBI/2026-27/230