Mumbai, Feb. 10 -- The Reserve Bank of India (RBI) has proposed exempting smaller non-bank lenders that do not take public funds or deal directly with customers from registering with the central bank to ease operational compliance.

"Considering their peculiar business model and lower risk profile, it has been decided that the 'NBFCs (non-banking financial companies) not availing public funds and not having customer interface', with asset size of less than Rs.1,000 crore, shall be exempted from registration requirement with the RBI, duly subject to the conditions as specified by the RBI," it said.

The draft will be open for feedback and comments until 4 March.

The banking regulator, along with the outcome of the monetary policy review, ...