RBI/2025-26/..
DOR.CRE.REC…./03.10.001/2025-26

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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:

1. The infrastructure project has completed at least one year of satisfactory operations post achievement of the date of completion of commercial operations.

2. The exposure is classified as ‘standard’ in the books of the lender.

3. The obligor's revenue depends on one main counterparty, which shall be a Central Government or a Public Sector Entity, and the contractual provisions provide for certainty regarding payments from the counterparty, for eg. availability-based revenues or take-or-pay provisions.

4. 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.

5. 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.

6. 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:

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