Mumbai, April 16 -- The Reserve Bank on Wednesday provided operational flexibility to non-banking financial companies (NBFCs) by allowing them to open branches without prior approval in most cases while imposing certain conditions for deposit taking entities based on net owned funds. The central bank has issued Reserve Bank of India (Non-Banking Financial Companies - Branch Authorisation) Amendment Directions, 2026. The objective of these amendment directions is to provide operational flexibility to NBFCs for branch expansion to facilitate ease of doing business while ensuring necessary regulatory compliance, it said in a circular.

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