RBI Eases NBFC Rules: No Registration for Small Firms, Relaxed Branch Approvals

• RBI exempts NBFCs with no public funds, no customer interface, and assets below ₹1,000 crore from registration.
• The central bank removes the requirement for prior approval for certain NBFCs to open over 1,000 branches.
• Governor Sanjay Malhotra stated that NBFCs' financial stability remains robust despite regulatory relaxations.
• RBI's liquidity measures are expected to provide buffers against government cash balance fluctuations and forex interventions.
• Experts like Sameer Sawant and Ajit Mishra view the RBI's policy as constructive for both banks and NBFCs.