Lenders Law

The Draft Reserve Bank of India (Non-Banking FinancialCompanies – Credit Facilities) Amendment Directions, 2026 , released on 6 August 2026 , introduces significant changes to the regulatory framework governing credit facilities offered by NBFCs. While the draft is concise, it raises several practical, legal, and operational questions. The following FAQs aim to assist NBFCs, fintech companies, legal professionals, compliance officers, and other stakeholders in understanding the implications of the proposed amendments. 1. What is the purpose of the Draft Amendment Directions? The Draft Amendment Directions seek to amend the Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 by: introducing statutory definitions of "term loan" and "revolving credit" ; prohibiting NBFCs from offering revolving credit products; deleting the existing chapter governing demand/call loans; and making cons...

On 6 August 2026 , the Reserve Bank of India (RBI) issued the Draft Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions,2026 for public comments. While the draft comprises only two pages, the proposed amendments have the potential to significantly reshape the lending landscape for NBFCs. The amendments introduce statutory definitions for "term loan" and "revolving credit" , prohibit NBFCs from offering revolving credit products (except by authorised credit card issuers), and delete the existing regulatory framework governing Demand/Call Loans . For NBFCs offering credit lines, digital lending products, overdraft-type facilities, or callable loans, these proposals warrant immediate attention. Background: The draft seeks to amend the Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 , issued on 28 November 2025 . RBI proposes these amendments in exercise of its powers und...