On Wednesday, the Reserve Bank of India (RBI) announced a significant change in regulations for non-banking financial companies (NBFCs), allowing them to open branches without prior approval from the central bank unless specifically restricted. This move is intended to enhance operational flexibility and ease of doing business while maintaining necessary regulatory compliance. Under the new framework, deposit-taking NBFCs with net owned funds (NOF) of up to ₹50 crore (approximately $6 million USD) or a credit rating below AA can only open branches within their home state. In contrast, those with NOF above ₹50 crore and an AA rating or higher can expand their branch network across India. The RBI's revised guidelines will take effect immediately. Additionally, changes were made regarding core investment companies (CICs), allowing for a review mechanism rather than mandatory closure of overseas representative offices in case of non-compliance, indicating a more flexible regulatory stance.