# NBFCs rejig books to dodge RBI rules, sources say 2026-09-28T05:57:03+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets Groups are tweaking balance sheets of non-banking finance companies (NBFCs) and core investment companies (CICs) to stay outside the RBI's regulatory ambit, Economic Times reports. The regulator has been sending notices asking why entities have not registered or comply with rules. An NBFC passes the principal business test when financial assets exceed 50% of total assets and financial income exceeds 50% of gross income. Companies are shifting income composition through commodity trading to prop up non-financial turnover, while CICs invest in properties to dilute group equity exposure below 90% of net assets. Experts say the moves are legal and driven by heavy compliance requirements under the NBFC framework. Restructuring options include removing public funds, funding through equity, failing the principal business test, or using LLPs and trusts that fall outside the NBFC definition. The RBI has granted an exemption to entities with assets below Rs 1,000 crore that operate without customer interface and public funds. ## Indian Opinion Analysis One source copy runs across both outlets, so the coverage is uniform straight reporting narrated from within the industry. That framing necessarily foregrounds the compliance burden and the legitimate business reasons companies sidestep it, while the RBI's enforcement perspective, why it tightened definitions or how many notices it has sent, is absent. A balanced reading would note the disclosed techniques are legal, but the regulator's silence on the trend leaves the narrative tilted toward the regulated, not the regulator. The RBI's response, whether through rule clarifications or enforcement action, will determine the next chapter. ## Coverage - economictimes.indiatimes.com (neutral report) Reports trend from industry advisors' perspective without including RBI's enforcement stance - cfo.economictimes.indiatimes.com (neutral report) Identically framed industry-side reporting, same neutrality Tags: core investment company, Economic Times, NBFC, Reserve Bank of India Canonical: https://indianopinion.org/nbfcs-rejig-books-to-dodge-rbi-rules-sources-say/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nbfcs-rejig-books-to-dodge-rbi-rules-sources-say/#story-in-brief