**Executive Summary**
This document outlines proposed amendments to the Reserve Bank of India's Master Direction for Non-Banking Financial Companies (NBFCs) regarding risk weights for infrastructure exposures. These amendments introduce a definition for "high-quality infrastructure projects" and modify the applicable risk weights. The amendments are scheduled to take effect on April 1, 2026, or earlier if adopted by an NBFC in its entirety.
**Key Points / Main Content**
* **Definition of High-Quality Infrastructure Projects:**
* Infrastructure projects must meet specific criteria to be classified as "high-quality".
* The project should have completed at least one year of satisfactory operations post the commercial operations date.
* The exposure must be classified as "standard" in the lender's books.
* The obligor's revenue must depend on a single counterparty, which must be a Central Government or a Public Sector Entity, and contractual provisions must ensure payment certainty.
* The contractual provisions must offer a high degree of protection for creditors.
* The obligor must have sufficient internal/external financial arrangements to cover working capital.
* The obligor is restricted from actions detrimental to creditors without their consent.
* **Modification of Risk Weights (Prudential Regulations):**
* The document modifies the table under paragraph 84 of Section III, Chapter IX of the Master Direction.
* Assets covering PPP and post-commercial operation date infrastructure projects in existence over a year of commercial operation will now have a weight of 50.
* Loans to "high-quality infrastructure projects" where the obligor has repaid at least 10 percent of the sanctioned amount will have a weight of 50.
* Loans to "high-quality infrastructure projects" where the obligor has repaid at least 5 percent but less than 10 percent of the sanctioned amount will have a weight of 75.
* Projects initially qualifying as "high-quality" but later failing to meet the criteria will be subject to previously prescribed risk weights.
* **Effective Date:**
* The amendment directions will come into force from April 1, 2026 or an earlier date upon complete adoption by the respective NBFC.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** NBFCs will need to assess their infrastructure project portfolios against the new definition of "high-quality infrastructure projects" and adjust risk weights accordingly.
* **Action Required:** Review existing infrastructure exposures and categorize projects based on the new criteria. Implement the revised risk weights as of April 1, 2026, or earlier if adopting the amendments in entirety.
Key Entities Referenced
Reserve Bank of India: The central bank of India, which is issuing the Amendment Directions.
Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023: The Master Direction that the current document amends, related to the regulation of Non-Banking Financial Companies.
Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Amendment Directions, 2025: The policy itself, amending regulations for NBFCs related to infrastructure project exposures.
NBFC: Non-Banking Financial Company, the entities to which the directions apply.
भारतीय �रज़वर् बैंक
_________________________ RESERVE BANK OF INDIA ______________________
www.rbi.org.in
RBI/2025-26/..
DOR.CRE.REC…./03.10.001/2025-26 DD-MM-YY
Reserve Bank of India (Non-Banking Financial Company – Scale Based
Regulation) Amendment Directions, 2025 - Draft for Comments
The Reserve Bank had issued Master Direction – Reserve Bank of India (Non-
Banking Financial Company – Scale Based Regulation) Directions, 2023 (hereinafter
referred to as Master Direction). Based on a review, it is proposed to amend certain
provisions relating to the applicable risk weights for infrastructure exposures of
NBFCs.
2. Accordingly, in exercise of the powers conferred by Chapter IIIB 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 to do so, hereby issues the Amendment Directions hereinafter specified.
3. These Amendment Directions modify the Master Direction as under:
(i) In Chapter II – ‘Definitions’, a sub-subparagraph 5.1.14 (A) shall be inserted
after sub-paragraph 5.1.14 as given below:
“5.1.14 (A) Infrastructure projects that meet all the following criteria shall be
classified as high-quality infrastructure projects:
a) The infrastructure project has completed at least one year of satisfactory
operations post achievement of the date of completion of commercial
operations.
b) The exposure is classified as ‘standard’ in the books of the lender.
c) The obligor's revenue depends on one main counterparty, which shall be
a Central Government or a Public Sector Entity, and the contractual
िविनयमन िवभाग, केंद्रीय कायार्लय, केंद्रीय कायार्लय भवन, 12वी/ं 13वी ंमंिज़ल, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400001
टेलीफोन/ Tel No: 22661602, 22601000 फै�/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
�हदं ी आसान ह,� इसका �योग बड़ाइएprovisions provide for certainty regarding payments from the counterparty,
for eg. availability-based revenues or take-or-pay provisions.
d) The contractual provisions provide for a high degree of protection for
creditors, such as escrow of cash flows; legal first claim of the lender over
all movable and immovable assets; and protection of interest of the
creditors in case of early termination.
e) The obligor has sufficient internal or external financial arrangements to
cover current and future working capital and other funding requirements of
the project as per the assessment of the lender.
f) The obligor is restricted from acting to the detriment of the creditors, eg.
being restricted from issuing additional debt against the cashflows and
assets of the project without consent of the existing creditors.
(ii) In Chapter IX – Prudential Regulations under Section III, Sr. no. 2 (e) of the
Table under paragraph 84 shall stand modified as under:
Sr. Weighted risk assets - On-balance Sheet items Percentage
No. Weight
(e) All assets covering PPP and post commercial operations 50
date (COD) infrastructure projects in existence over a
year of commercial operation
(e) (i) Loans to ‘High-quality infrastructure projects’ as defined in 50
sub-subparagraph 5.1.14 (A) and where the obligor has
repaid at least 10 percent of the sanctioned amount
(e) (ii) Loans to ‘High-quality infrastructure projects’ as defined in 75
sub-subparagraph 5.1.14 (A) and where the obligor has
repaid at least 5 percent but less than 10 percent of the
sanctioned amount
Note: 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.
4. The Amendment Directions shall come into force from April 1, 2026, or from an
earlier date when adopted by a NBFC in entirety.
(Vaibhav Chaturvedi)
Chief General Manager