**Executive Summary**
This document, issued by the Reserve Bank of India on January 1, 2026, outlines amendment directions to the Prudential Norms on Capital Adequacy for Non-Banking Financial Companies (NBFCs). The amendments modify the percentage weight of on-balance sheet items related to loans for 'High-quality infrastructure projects'. The changes are effective from April 1, 2026, or earlier, if adopted by an NBFC in its entirety.
**Key Points / Main Content**
* **Amendment to On-Balance Sheet Items:**
* Sr. no. 2 (e) of the Table under paragraph 18(1) of the original Directions is modified.
* **Risk Weights for Loans to High-Quality Infrastructure Projects:**
* Loans to 'High-quality infrastructure projects' (as defined in the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2026) where the borrower has repaid at least 2% of the sanctioned project debt, the percentage weight is 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% of the sanctioned project debt, the percentage weight is 50.
* Projects failing to meet the stated conditions are subject to the risk weights prescribed under Sr. no. 3(e) or (g) of the table.
* The repayment threshold is determined based on the sanctioned project debt. Additional debt should be clubbed with previous loans to determine the repayment threshold.
* **Effective Date:**
* The Amendment Directions are applicable from April 1, 2026.
* NBFCs can choose to adopt these directions from an earlier date in their entirety.
* **Transitional Provision:**
* NBFCs attracting a lower risk weight under extant guidelines but subjected to higher risk weights under these directions can continue to maintain the extant risk weights until the next review/renewal or March 31, 2027, whichever is earlier.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
**Impact:**
The amendment affects the capital adequacy requirements for NBFCs involved in lending to high-quality infrastructure projects. The changes impact the risk weights associated with these loans, potentially affecting the amount of capital NBFCs need to hold.
**Action Required:**
NBFCs need to assess the impact of these changes on their capital adequacy and adjust their capital management strategies accordingly. They must also determine if they will adopt the directions early and implement the necessary changes to ensure compliance.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Amendment Directions, 2026: The primary subject of the document; amendment directions regarding capital adequacy for Non-Banking Financial Companies.
Reserve Bank of India: The regulator issuing the amendment directions.
Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025: The directions that are being amended by this document.
Reserve Bank of India Act, 1934: The Act that confers powers to the Reserve Bank of India.
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