Date: 2026-01-13Category: Not ApplicableState: Union GovernmentCountry: India
RBI invites public comments on Draft Amendment Directions on ‘Clarification on Owned Fund / Tier 1 Capital computation for NBFCs / ARCs and applicability to “Credit / Investment Concentration” Norms’
**Executive Summary**
The Reserve Bank of India (RBI) has released draft amendment directions on the clarification of Owned Fund / Tier 1 Capital computation for Non-Banking Financial Companies (NBFCs) / Asset Reconstruction Companies (ARCs) and its applicability to "Credit / Investment Concentration" Norms. These amendments affect several Master Directions issued in 2025. Stakeholders are invited to submit comments by January 28, 2026, via the RBI website or email.
**Key Points / Main Content**
* **Amendment Scope:** The draft amendment directions impact the following Master Directions:
* RBI (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025
* Master Direction – RBI (Non-Banking Financial Companies – Concentration Risk Management) Directions, 2025
* RBI (Housing Finance Companies) Directions, 2025
* RBI (Core Investment Companies) Directions, 2025
* RBI (Mortgage Guarantee Companies) Directions, 2025
* RBI (Asset Reconstruction Companies) Directions, 2025
* RBI (Standalone Primary Dealers) Directions, 2025
* **Feedback Submission:**
* Comments are invited from stakeholders until January 28, 2026.
* Feedback can be submitted via the "Connect 2 Regulate" section on the RBI website.
* Alternatively, feedback can be emailed with the subject line: "Feedback on Draft Amendment Directions on ‘Clarification on Owned Fund / Tier 1 Capital computation for NBFCs / ARCs’ and applicability to "Credit/Investment Concentration" Norms'."
* **Background and Objective:**
* The RBI has been receiving requests from NBFCs to review the provisions relating to reckoning Tier 1 Capital for compliance with Credit / Investment concentration norms.
* The review also addresses requests for clarification on aspects of Owned Fund / Tier 1 Capital.
* RBI has reviewed the guidelines and proposed clarifications and revisions in the matter.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs) and Asset Reconstruction Companies (ARCs)**
* **Impact:** These companies will be affected by the new clarifications on the computation of Owned Fund / Tier 1 Capital for compliance with Credit / Investment Concentration norms.
* **Action Required:** Review the draft amendment directions and submit comments to RBI by January 28, 2026, if necessary.
Key Entities Referenced
Reserve Bank of India: India's central bank, the regulator issuing the draft amendment directions.
Draft Amendment Directions on ‘Clarification on Owned Fund / Tier 1 Capital computation for NBFCs / ARCs and applicability to “Credit / Investment Concentration” Norms': The primary subject of the press release, these directions clarify capital computation and investment concentration norms for NBFCs and ARCs.
Master Directions: Existing regulatory guidelines that the Draft Amendment Directions are designed to amend.
NBFCs / ARCs: Non-Banking Financial Companies and Asset Reconstruction Companies, the entities to which the directions apply.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
January 13, 2026
RBI invites public comments on Draft Amendment Directions on ‘Clarification
on Owned Fund / Tier 1 Capital computation for NBFCs / ARCs and
applicability to “Credit / Investment Concentration” Norms’
The Reserve Bank of India (RBI) has released today the Draft Amendment
Directions on ‘Clarification on Owned Fund / Tier 1 Capital computation for
NBFCs / ARCs and applicability to “Credit / Investment Concentration” Norms’
which amend the Master Directions listed below:
(i) Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms
on Capital Adequacy) Directions, 2025 vide Reserve Bank of India (Non-
Banking Financial Companies – Prudential Norms on Capital Adequacy)
Second Amendment Directions, 2026.
(ii) Master Direction – Reserve Bank of India (Non-Banking Financial Companies -
Concentration Risk Management) Directions, 2025 vide Reserve Bank of India
(Non-Banking Financial Companies - Concentration Risk Management) Second
Amendment Directions, 2026.
(iii) Reserve Bank of India (Housing Finance Companies) Directions, 2025 vide
Reserve Bank of India (Housing Finance Companies) Amendment Directions,
2026.
(iv) Reserve Bank of India (Core Investment Companies) Directions, 2025 vide
Reserve Bank of India (Core Investment Companies) Amendment Directions,
2026.
(v) Reserve Bank of India (Mortgage Guarantee Companies) Directions, 2025 vide
Reserve Bank of India (Mortgage Guarantee Companies) Amendment
Directions, 2026.
(vi) Reserve Bank of India (Asset Reconstruction Companies) Directions, 2025 vide
Reserve Bank of India (Asset Reconstruction Companies) Amendment
Directions, 2026.
(vii) Reserve Bank of India (Standalone Primary Dealers) Directions, 2025 vide
Reserve Bank of India (Standalone Primary Dealers) Amendment Directions,
2026.2
The comments on the said Draft Amendment Directions are invited from the
stakeholders till January 28, 2026. The comments / feedback may be submitted
through the link under the ‘Connect 2 Regulate’ Section available on the Reserve
Bank’s website or may alternatively be forwarded to
The Chief General Manager
Balance Sheet Group
Department of Regulation, Central Office
Reserve Bank of India, 13th Floor
Shahid Bhagat Singh Marg
Fort
Mumbai – 400 001
Or
by email
with the subject line Feedback on Draft Amendment Directions on ‘Clarification on
Owned Fund / Tier 1 Capital computation for NBFCs / ARCs” and applicability to
“Credit/Investment Concentration” Norms’.
Background and Objective
Currently, NBFCs (other than NBFC-UL) and ARCs reckon Tier 1 Capital as on
March 31 of the previous year for complying with Credit / Investment concentration
norms. RBI has been receiving requests from NBFCs for a review of these provisions
as well as for clarification on certain aspects of Owned Fund / Tier 1 Capital.
Accordingly, RBI has reviewed the relevant provisions / Directions / guidelines and
has proposed clarifications and revisions in the matter.
(Brij Raj)
Press Release: 2025-2026/1911 Chief General Manager