**Executive Summary**
The Reserve Bank of India issued amendment directions effective January 1, 2026, modifying the Prudential Norms on Capital Adequacy for Non-Banking Financial Companies (NBFCs). The amendments pertain to the percentage weight of loans to 'High-quality infrastructure projects' on On-balance Sheet items. These directions are applicable from April 1, 2026, or from an earlier date if adopted by an NBFC.
**Key Points / Main Content**
* **Amendment Directions**: Modify the Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025.
* **On-balance Sheet Items - Percentage Weight Changes**:
* Loans to 'High-quality infrastructure projects' (where borrower has repaid at least 2% of sanctioned debt): Percentage weight is 75.
* Loans to 'High-quality infrastructure projects' (where borrower has repaid at least 5% of sanctioned debt): Percentage weight is 50.
* **Risk Weight Applicability**:
* If 'High-quality infrastructure projects' subsequently fail to meet the conditions, they will be subject to applicable risk weights under Sr. no.3(e) or (g).
* The repayment threshold is based on the sanctioned project debt. Additional debt sanctioned as part of takeover should be clubbed with previous loans to determine the repayment threshold.
* **Effective Date**: Amendment Directions are applicable from April 1, 2026, or earlier if adopted by the NBFC.
* **Risk Weight Maintenance**: NBFCs can maintain current risk weights until the next review/renewal or March 31, 2027, whichever is earlier, if those weights are lower than weights outlined in these Directions.
**Impact Analysis**
**Stakeholder**: Non-Banking Financial Companies (NBFCs)
**Impact**: NBFCs must adhere to the revised percentage weights for loans to 'High-quality infrastructure projects' and assess if their current exposures meet the specified conditions for these weights.
**Action Required**: NBFCs should assess their loan portfolios, update their risk assessment models and capital adequacy calculations, and implement changes by April 1, 2026, or earlier if adopting these directions fully. NBFCs can maintain current weights until the next review/renewal or March 31, 2027, whichever is earlier.
Key Entities Referenced
Reserve Bank of India: The issuing authority and regulator.
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025: The original directions being amended.
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Amendment Directions, 2026: The main policy document; an amendment to existing norms for Non-Banking Financial Companies' capital adequacy.
Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2026: Directions referenced for the definition of 'High-quality infrastructure projects'.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
_________________________ ______________________
www.rbi.org.in
RBI/2025-26/168
DOR.CRE.REC.373/21-01-002/2025-26 January 1, 2026
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms
on Capital Adequacy) Amendment Directions, 2026
The Reserve Bank had issued the Reserve Bank of India (Non-Banking Financial
Companies – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter
referred to as ‘the Directions’).
2. On a review, in exercise of the powers conferred by Chapter III B of the
Reserve Bank of India Act, 1934 and all other laws enabling the Reserve Bank in this
regard, the Reserve Bank being satisfied that it is necessary and expedient in the
public interest so to do, hereby issues the Amendment Directions hereinafter
specified.
3. These Amendment Directions modify the Directions as under:
Sr. no. 2 (e) of the Table under paragraph 18(1) shall stand modified as under:
Sr. No. On-balance Sheet items Percentage
Weight
(e) (i) Loans to ‘High-quality infrastructure projects’ as defined in 75
the Reserve Bank of India (Non-Banking Financial
Companies - Concentration Risk Management)
Amendment Directions, 2026 and where the borrower has
repaid at least 2 per cent of the sanctioned project debt.
(e) (ii) Loans to ‘High-quality infrastructure projects’ as defined in 50
the Reserve Bank of India (Non-Banking Financial
Companies - Concentration Risk Management)
Amendment Directions, 2026 and where the borrower has
repaid at least 5 per cent of the sanctioned project debt.
विवियमि विभाग, केंद्रीय कायाालय, केंद्रीय कायाालय भिि, 12िी/ीं 13िी ींमींव़िल, शहीद भगत व ींह मागा, फोर्ा, म ींबई - 400001
र्ेलीफोि/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
हहदिं ी आसान ह,ैं इसका प्रयोग बड़ाइएProvided that, for sl no.(e)(i) and (e)(ii) above, in the event
the projects that qualify as High-quality infrastructure
projects subsequently fail to meet these conditions, they
shall be subject to risk weights prescribed under Sr.
no.3(e) or (g), as applicable, of this table.
Provided further that for sl no.(e)(i) and (e)(ii) above the
repayment threshold should be determined based on the
sanctioned project debt. Additional debt, if any, sanctioned
as a part of takeover of the loan or otherwise should be
clubbed with previous loan(s) sanctioned against the
project assets and/or cash flows to determine the
repayment threshold.
4. The Amendment Directions shall be applicable from April 1, 2026, or from an
earlier date when these Directions are adopted by a NBFC in entirety.
Provided that, in case of exposures attracting a lower risk weight under the
extant guidelines but will be subject to higher risk weights under these
Directions, NBFCs can continue to maintain the extant risk weights till the next
review / renewal or March 31, 2027, whichever is earlier.
(Vaibhav Chaturvedi)
Chief General Manager