RBI’s 2025 framework for NBFC financial statement presentation and disclosures

The Reserve Bank of India has introduced a comprehensive disclosure and presentation framework titled “Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures Directions, 2025”. These Directions are effective immediately and are intended to create a common, transparent, and comparable format for financial statements across a wide spectrum of NBFCs.

By aligning these norms with the existing scale-based regulatory architecture, RBI seeks to:

  • Harmonise how financial information is presented by different categories of NBFCs
  • Improve clarity and usefulness of financial data for investors, regulators, and other stakeholders
  • Strengthen supervisory review through standardised disclosures
  • Enhance overall market confidence in the NBFC sector

Statutory authority for issuing the Directions

The Directions have been framed by RBI in exercise of its powers under several provisions, including:

  • Section 45L of the Reserve Bank of India Act, 1934
  • Section 3 read with section 31A and section 6 of the Factoring Regulation Act, 2011
  • Sections 30A and 32 of the National Housing Bank Act, 1987
  • Other enabling provisions and laws that empower RBI to issue such Directions in public interest

Through DOR.ACC.REC.No.278/21.04.018/2025-26, dated November 28, 2025, RBI has formally notified these Directions for immediate implementation.

Important: The Directions are binding on specified NBFCs, subject to detailed carve-outs, and form part of RBI’s broader regulatory consolidation and transparency initiative for non-bank financial intermediation.

Short title and commencement

Name of the Directions

The Directions are officially titled:

Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025

This title should be used in all regulatory references, board notes, and internal policy documents of applicable NBFCs.

Effective date

  • The Directions come into force with immediate effect from the date of the notification, i.e., November 28, 2025.
  • NBFCs falling under the scope of these Directions should begin aligning their financial statement formats and disclosures from the current/next reporting period, as applicable, ensuring full compliance at the earliest possible closing.

Scope and coverage of the Directions

The Directions lay down a layer-agnostic base framework for financial statement presentation and disclosures, with specific exclusions and limited application for designated entities. The term “NBFCs” in these Directions covers multiple categories, as elaborated below.

NBFC categories fully covered

The following entities, registered with RBI or under relevant statutes, are comprehensively covered by the Directions for all regulatory layers, unless otherwise specified:

  1. Deposit-taking NBFCs (NBFC-D)

    • These are NBFCs registered under the provisions of the RBI Act, 1934 that are permitted to accept public deposits.
    • Given their public-facing nature, high standards of disclosure and consistent financial presentation are critical.

  2. NBFC-Investment and Credit Company (NBFC-ICC)

    • Registered under the RBI Act, 1934, these entities engage in investment and lending activities.
    • They form a large part of the NBFC universe and must align with the standardised reporting norms.

  3. NBFC-Factor

    • Registered under the Factoring Regulation Act, 2011, these companies undertake factoring of receivables.
    • Harmonised disclosure is essential due to their specialised business model and risk profile.

  4. NBFC-Microfinance Institution (NBFC-MFI)

    • Registered under the RBI Act, 1934, they provide microfinance loans, often to low-income households.
    • Enhanced transparency is aimed at protecting vulnerable borrowers and ensuring consistent risk disclosure.

  5. NBFC-Infrastructure Finance Company (NBFC-IFC)

    • Registered under the RBI Act, 1934, these entities finance infrastructure projects.
    • Standardised disclosures support better understanding of long-term asset quality and funding risks.