RBI NBFC Draft Norms Feedback Deadline August 28 2026 Watch

Today, Friday August 28, 2026, is the last day for industry feedback on the Reserve Bank of India's draft norms proposing that non-banking financial companies offer only term loans and discontinue revolving credit products — the single most consequential domestic regulatory event for India's NBFC sector this year. The draft, released on August 7, 2026, proposed that once a loan is disbursed, the sanctioned limit cannot be restored or replenished upon repayment. The norms, if implemented as drafted, would effectively ban flexi loans, overdraft facilities and credit lines at NBFCs — a direct hit on Bajaj Finance's flexi loan product, which analysts estimate accounts for approximately 25 per cent of its AUM, and on similar revolving credit products at Shriram Finance and other large NBFCs. Three weeks of market pricing on this regulatory risk: BAJAJ FINANCE : fell from a 52-week high of Rs 1,177.60 on August 4 to approximately Rs 1,060 today — a decline of over 9.9 per cent since the draft was released Shriram Finance: among the top Nifty losers on multiple sessions through August on the same regulatory overhang

: declined in sympathy with Bajaj Finance through August despite having more diversified revenue streams The two arguments the NBFC industry is expected to make in its August 28 feedback: Grandfathering request: existing revolving credit facilities should be allowed to continue under current terms; restrictions should apply only to new loans issued after the effective date Level playing field argument: if restrictions are applied consistently across all NBFC categories, no single company is disproportionately disadvantaged, reducing the structural competitive concern