**Executive Summary**
This document contains the Reserve Bank of India's (RBI) Amendment Directions, 2026, modifying the Prudential Norms on Capital Adequacy for Non-Banking Financial Companies (NBFCs). These changes relate to the percentage weight of loans to 'High-quality infrastructure projects' on the balance sheet. The Amendment Directions are applicable from April 1, 2026.
**Key Points / Main Content**
* **Modification of Directions:** These Amendment Directions modify the "Directions" as under:
* Sr. no. 2 (e) of the Table under paragraph 18(1) shall stand modified.
* **On-Balance Sheet Items Percentage Weight Modification:**
* Loans to 'High-quality infrastructure projects' (as defined in the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2026 and where the borrower has repaid at least 2 percent of the sanctioned project debt) shall have a percentage weight of 75.
* Loans to 'High-quality infrastructure projects' (as defined in the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2026 and where the borrower has repaid at least 5 percent of the sanctioned project debt) shall have a percentage weight of 50.
* **Conditions:**
* Projects that initially qualify as High-quality infrastructure projects but subsequently fail to meet the conditions will be subject to risk weights prescribed under Sr. no. 3(e) or (g) of the table.
* The repayment threshold shall be determined based on the sanctioned project debt. Additional debt sanctioned as part of a loan takeover should be clubbed with previous loans against the project assets to determine the repayment threshold.
* **Effective Date:**
* The Amendment Directions shall be applicable from April 1, 2026, or an earlier date if adopted by an NBFC in entirety.
* **Transitional Provision:**
* NBFCs can maintain the extant risk weights until the next review/renewal or March 31, 2027, whichever is earlier, if exposures attract a lower risk weight under extant guidelines but higher risk weights under these Directions.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
**Impact:**
NBFCs will have to adjust their capital adequacy calculations based on the revised percentage weights for loans to high-quality infrastructure projects and ensure compliance with the new provisions.
**Action Required:**
NBFCs need to implement these amendments from April 1, 2026, or earlier if they choose to adopt the directions in entirety. They should also review existing exposures and determine whether they should transition to the revised risk weights or maintain existing weights until the next review or March 31, 2027.
Key Entities Referenced
Reserve Bank of India: The issuer of the document and the regulator exercising powers under the Reserve Bank of India Act, 1934.
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025: The original Directions being amended by this document.
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Amendment Directions, 2026: The set of amendment directions issued by the Reserve Bank of India concerning capital adequacy for Non-Banking Financial Companies.
Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2026: Defines 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