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The Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 provides a comprehensive regulatory framework for NBFCs that are either systemically important non-deposit taking or deposit-taking entities. It outlines guidelines on capital adequacy, asset classification, provisioning norms, corporate governance, and reporting requirements to ensure financial stability and protect stakeholders’ interests.

These directions are applicable to NBFCs registered under the Reserve Bank of India Act, 1934, and aim to align their operations with prudential norms and risk management practices.