The Reserve Bank of India (RBI) on January 01, 2026, issued the Reserve Bank of India (Non-Banking Financial Companies - Concentration Risk Management) Amendment Directions, 2026.
The following has been stated namely: -
• The amendment introduces a new proviso classifying certain infrastructure loans as “high-quality infrastructure projects” subject to stringent conditions, including at least one year of successful operations post-COD, standard asset classification, and strong concession-based revenue protection.
• It mandates robust lender safeguards such as escrow/TRA mechanisms, pari-passu charge on assets, step-in rights, termination payment protection, and restrictions on additional debt without lender consent.
• The borrower shall also demonstrate adequate arrangements to meet working capital and funding needs.
• These amendments will apply from the date the NBFC adopts the RBI (NBFC – Prudential Norms on Capital Adequacy) Amendment Directions, 2026, or April 01, 2026, whichever is earlier.
[Notification no. - RBI/2025-26/169 DOR.CRE.REC.372/07-03-008/2025-26]
