Tata Motors Finance, Piramal Enterprises surrender NBFC licences to RBI post merger

The Reserve Bank of India (RBI) on Tuesday announced that Tata Motors Finance and Piramal Enterprises have voluntarily surrendered their certificates of registration, following mergers with their respective associate companies. Tata Motors Finance merged with Tata Capital on May 8, 2025, after securing all necessary regulatory approvals, while Piramal Enterprises merged with Piramal Finance in September 2025. In addition to these two, six other non-banking financial companies (NBFCs)—AAR Shyam India Investment Company, Rama Investment Co, Sri Ramachandra Enterprises, Shree Nirman, Ankita Pratisthan, and Mayuka Investment—also surrendered their licences, according to an RBI statement. Separately, the central bank has invited public comments on draft amendments proposing exemptions for certain NBFCs from the requirement of registration with the RBI. The draft directions, titled Reserve Bank of India (Non-Banking Financial Companies Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026, were announced following the February 6 monetary policy. Comments from NBFCs, stakeholders, and the public are invited by March 4, 2026.

Under the proposed framework, NBFCs that do not accept public funds and do not have direct customer interfaces, with asset sizes under Rs 1,000 crore, would be exempt from RBI registration, subject to certain conditions. These entities are classified as ‘Type I NBFCs’. The RBI explained that the move comes after a review of the Scale Based Regulatory (SBR) framework introduced in October 2021. The review concluded that NBFCs without public funds or customer interfaces carry a lower risk profile and therefore deserve differentiated regulatory treatment. Currently, such entities are placed in the Base Layer of the SBR framework and are subject to relatively relaxed norms. The draft directions also detail procedures for deregistration or conversion of existing eligible NBFCs, including those currently holding Type I registration, along with related provisions.(With agency inputs)