**Executive Summary**
The Reserve Bank of India (RBI) has issued amendment directions to the "Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025" to modify the risk weights for loans to 'High-quality infrastructure projects'. The amendment directions are applicable from April 1, 2026, or an earlier date if the NBFC adopts these directions in entirety. NBFCs can maintain extant risk weights until the next review/renewal or March 31, 2027, whichever is earlier.
**Key Points / Main Content**
* **Amendment to Directions:**
* Sr. no. 2(e) of the Table under paragraph 18(1) of the Directions is modified.
* **Risk Weights for Loans to 'High-Quality Infrastructure Projects'**
* Loans where the borrower has repaid at least 2% of the sanctioned project debt: 75% risk weight.
* Loans where the borrower has repaid at least 5% of the sanctioned project debt: 50% risk weight.
* **Conditions for Risk Weight Application:**
* If projects initially qualifying as 'High-quality infrastructure projects' fail to meet the conditions, they will be subject to the standard risk weights outlined in Sr. no. 3(e) or (g) of the table.
* The repayment threshold is based on the sanctioned project debt, including any additional debt sanctioned as part of a takeover or otherwise, which should be clubbed with previous loan(s).
* **Applicability:**
* The Amendment Directions are applicable from April 1, 2026, or earlier if adopted in entirety by an NBFC.
* NBFCs can maintain existing lower risk weights until the next review/renewal or March 31, 2027, whichever is earlier, if the new directions result in higher risk weights.
**Impact Analysis**
**Impact**
* Affected by the new risk weight assignments for high-quality infrastructure projects.
**Action Required**
* Evaluate the impact of the revised risk weights on their capital adequacy.
* Implement the new risk weights from April 1, 2026, or earlier if adopted.
* Assess whether to maintain existing risk weights until the next review/renewal or March 31, 2027.
Key Entities Referenced
Reserve Bank of India: Central bank of India, the issuer of the directions.
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025: The original directions that are being amended.
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Amendment Directions, 2026: The new set of directions issued by Reserve Bank of India
Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2020: Directions defining 'High-quality infrastructure projects'
Non-Banking Financial Companies: Entities to which these directions apply.
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