India, April 30 -- Non-deposit-taking NBFCs, with an asset size of less than '1,000 crore and not availing public funds, will be eligible for exemption from registration and reserve fund requirements from July 1, the Reserve Bank said on Wednesday.

The central bank has issued a circular in this regard to reduce compliance requirements for such non-banking financial companies (NBFCs).

"NBFCs not availing public funds and not having any customer interface, and having asset size of less than '1,000 crore as per the latest audited balance sheet are exempted from the provisions of sections 45IA and 45IC of the RBI Act, 1934...with effect from July 1, 2026," it said.

Such existing NBFCs, including those holding Certificate of Registration as...