RegAlertIndia: lending & credit regulation — 2026-09
RegulatedIndia: RBI regulates NBFCs for lending; strict licensing for P2P and credit bureaus
Frozen snapshot — the guide as it stood at the end of 2026-09. See the live guide for the current state.
Lending is strictly regulated by the RBI. Traditional banks and Non-Banking Financial Companies (NBFCs) require RBI registration. P2P lending platforms and Credit Information Companies (CICs) face specific, stringent licensing regimes. Microfinance institutions (MFIs) are regulated under the NBFC-MFI framework with strict interest rate caps and borrower protection norms.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | LicenceNBFC Registration Requires NBFC-P2P or NBFC-MFI license depending on model | INR 200m | 6-12 months | RBI |
| SME / commercial lending | LicenceNBFC Registration Standard NBFC registration for commercial lending | INR 200m | 6-12 months | RBI |
| Microfinance | LicenceNBFC-MFI Registration Subject to interest rate caps and borrower protection norms | INR 200m | 6-12 months | RBI |
| Buy-now-pay-later | LicenceNBFC Registration Regulated as NBFC; recent guidelines on digital lending apply | INR 200m | 6-12 months | RBI |
| P2P lending platform | LicenceP2P Lending License Strict escrow and platform neutrality requirements | INR 50m | 3-6 months | RBI |
| Credit bureau / scoring | LicenceCIC Registration Must be registered as Credit Information Company | INR 100m | 3-6 months | RBI |
| Debt collection | LicenceNBFC Registration Collection agencies must be tied to licensed NBFCs | INR 200m | 6-12 months | RBI |
New — what changed recently
- 2023-11Digital Lending Guidelines — RBI issued comprehensive guidelines for digital lending by NBFCs and banks, mandating standardized agreements and direct benefit transfers.
- 2023-06P2P Platform Regulations — Enhanced compliance requirements for P2P platforms, including stricter capital adequacy and borrower verification norms.
- 2022-12Credit Information Company Rules — Revised rules for Credit Information Companies to improve data privacy and accuracy in credit reporting.
Market-entry checklist
- 1Secure RBI NBFC RegistrationApply for NBFC registration with INR 200m paid-up capital and net owned funds.
- 2Establish Compliance FrameworkImplement AML/KYC policies and appoint a Chief Compliance Officer as per RBI norms.
- 3Set Up Escrow AccountsFor P2P or digital lending, establish RBI-approved escrow accounts for fund management.
- 4Register with Credit BureausEnsure data sharing with all four Credit Information Companies (CICs) for credit reporting.
- 5Adopt Digital Lending StandardsUse standardized loan agreements and ensure direct benefit transfers to borrower accounts.
- 6Implement Data Privacy MeasuresComply with DPDP Act 2023 for data protection and user consent management.