PRESS RELEASE: 2025-2026/1824, Dated: 01.01.2026
1. Introduction
The Reserve Bank of India (RBI) has amended the concentration risk management framework applicable to Non-Banking Financial Companies (NBFCs) by introducing specific criteria for classifying certain infrastructure lending as high-quality infrastructure projects.
2. Amendment To Concentration Risk Directions
The amendment has been notified through the RBI (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2026, issued vide Press Release No. 2025-2026/1824 dated 1 January 2026. The changes are aimed at refining exposure norms and aligning risk treatment with project quality.
3. Classification Of High-Quality Infrastructure Lending
The amendment inserts a proviso to sub-paragraph 4(4), laying down the conditions under which infrastructure lending meeting specified criteria shall qualify as lending to high-quality infrastructure projects. This classification allows such exposures to be treated differently for concentration risk purposes.
4. Applicability And Implementation Timeline
The amended provisions will apply when NBFCs implement the capital adequacy amendment directions, or from 1 April 2026, whichever is earlier. NBFCs are required to review their infrastructure loan portfolios in light of the revised classification framework.
5. Conclusion
The RBI’s amendment provides greater clarity on the treatment of eligible infrastructure lending under concentration risk norms. NBFCs should assess compliance readiness and ensure alignment with the revised directions within the prescribed timelines.
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