RBI revises rules for NBFCs opting to voluntarily exit operations

The Reserve Bank of India (RBI) has revised the application form and indicative checklist for voluntary surrender of Certificate of Registration (CoR) by Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs), following recent regulatory amendments issued in April 2026.In a notification dated June 30, the central bank stated that the revised framework comes after the issuance of the “Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026” on April 29, which introduced changes relating to Unregistered Type I NBFCs.

The RBI had earlier announced through a press release dated September 23, 2025 that NBFCs and HFCs seeking voluntary surrender of their CoR for cancellation could submit applications through the PRAVAAH portal. With the latest amendments, the application form and checklist available on the portal have now been updated.
According to the RBI, applicant NBFCs and HFCs are required to submit the revised application form along with all supporting documents as specified in the updated checklist through the PRAVAAH portal.The central bank clarified that submission of the application and supporting documents should not be treated as automatic cancellation of the Certificate of Registration. Until the RBI formally approves the cancellation and communicates the decision to the concerned entity, NBFCs and HFCs must continue to comply with all applicable regulatory guidelines and supervisory requirements issued by the RBI, the National Housing Bank (NHB), and other competent authorities.

Entities are also required to continue filing all applicable regulatory and supervisory returns during the interim period, the RBI added.

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