Recent Current Affairs related to NBFC

Paul Merchants Finance Pvt Ltd (PMFPL), a diversified Non-Banking Financial Company (NBFC) and a part of the Paul Merchants Group, has launched a “Loan Against Silver” product, becoming the first NBFC in India to establish exclusive branches dedicated to silver loans.

The NBFC has initiated its silver loan operations from the Union Territory of Chandigarh.

Under this credit facility, eligible customers can secure loans ranging from ₹2,000 to ₹15 lakh.

Wizzmoni Financial Services Limited (formerly Unimoni), an Indian Non-Banking Financial Company (NBFC), has partnered with Oman Air to launch a co-branded, AI-powered travel card named “Wizz Voyager Multi-Currency Card” that supports multiple global currencies.

Bank of America Corporation (BofA) has entered into a Joint Venture (JV) agreement with Jio Financial Services Ltd (JFSL). Under the JV, BofA will acquire up to a 49.9% stake in Jio Credit Ltd (JCL).

Muthoot FinCorp Ltd, a Non-Banking Financial Company (NBFC), has secured a perpetual Authorised Dealer Category-II (AD-II) foreign exchange (Forex) licence from the RBI. The licence enables the NBFC to offer a wider range of regulated forex services.

Indel Remit, the foreign exchange division of Indel Money Ltd, has secured a perpetual Authorised Dealer-II (AD-II) licence from the RBI to offer trade remittance services.

Under RBI directions, the company is restricted from processing gifts, donations, and transactions exceeding ₹25 lakh.

The RBI has identified 17 Non-Banking Financial Companies (NBFCs) for inclusion in the Upper Layer (NBFC-UL) for FY27, based on their financial position as of March 31, 2026.

Tata Sons continues to be categorized under the upper-layer list. The new entities added to the list include Rural Electrification Corporation (REC) Ltd, Power Finance Corporation (PFC) Ltd, Indian Railway Finance Corporation (IRFC) Ltd, and Housing and Urban Development Corporation (HUDCO) Ltd.

Axis Finance Ltd (AFL) has launched an in-house Business Rules Engine (BRE) and digital platform named 'Axis Finance Drishti'.

It is designed to strengthen credit decision-making and risk management in the retail and Micro, Small and Medium Enterprise (MSME) lending sectors by enabling faster, data-driven, and scalable credit assessments.

Delhivery Financial Services Pvt Ltd, a subsidiary of Delhivery Ltd, has received the Certificate of Registration (CoR) from the RBI to operate as a Type-II Non-Banking Financial Company-Non-Deposit Taking (NBFC-ND).

RBI has issued the ‘RBI (Non-Banking Financial Companies (NBFC) – Registration, Exemptions and Framework for Scale Based Regulation) Second Amendment Directions, 2026’ to revise the framework for identifying Upper Layer Non-Banking Financial Companies (NBFC-ULs).

Under the new rules, effective from June 24, 2026, any NBFC with an asset size of ₹1 lakh crore or more will be automatically classified as an NBFC-UL. This replaces the previous parameter-based assessment model with an absolute asset-size criterion.

The asset size threshold will be reviewed every 3 years, instead of the 5-year cycle proposed in the draft. Additionally, government-owned NBFCs that meet the eligibility criteria will now be considered for inclusion in the UL category.

The Board of Directors of Power Finance Corporation Ltd (PFC) and REC Ltd (REC) have approved a merger scheme to integrate REC into PFC under Sections 230 to 232 of the Companies Act, 2013.

This consolidation will create a financing entity with an aggregate loan book exceeding ₹11 lakh crore.

The Government of India (GoI) has extended the Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0) until August 2026 or until guarantees amounting to ₹20,000 crore are issued, whichever is earlier.

The government has also increased the maximum loan amount cap for Large Sized Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs)/Micro Finance Institutions (MFIs) from ₹300 crore to ₹1,000 crore, subject to an overall ceiling of 20% of Assets under Management (AUM).

Shriram Overseas Investments Ltd, a wholly owned subsidiary of Shriram Finance Ltd, has received in-principle approval from the Reserve Bank of India (RBI) to start Primary Dealer (PD) business. The authorization is subject to the fulfillment of specific conditions set by the RBI.

The RBI has issued the “RBI (Non-Banking Financial Companies (NBFC) - Branch Authorisation) Amendment Directions, 2026” to enhance operational flexibility for NBFCs while ensuring regulatory oversight. The rules have come into force with immediate effect.

All applications must be submitted through the Platform for Regulatory Application, Validation And AutHorisation (PRAVAAH) portal. Under the revised norms, deposit-taking NBFCs with Net Owned Funds (NOF) up to ₹50 crore or lower credit ratings are permitted to open branches only within the state of their registered office.