The Reserve Bank of India (RBI) on March 10, 2026, notified the Reserve Bank of India (Non-Banking Financial Companies - Concentration Risk Management) Second Amendment Directions, 2026 to amend the Master Direction – Reserve Bank of India (Non-Banking Financial Companies - Concentration Risk Management) Directions, 2025.
The following has been stated: -
•The Reserve Bank of India issued the Second Amendment Directions, 2026, to update the 2025 Master Direction on concentration risk management for NBFCs.
•The amendment aligns the definitions of “Owned Fund” and “Tier 1 Capital” with the RBI’s Prudential Norms on Capital Adequacy Directions, 2025.
•NBFCs must obtain an external auditor’s certificate before counting any capital augmentation for concentration norms compliance.
•Tier 1 capital for compliance will be determined based on the latest audited or reviewed financial statements, and the directions will take effect immediately.
The detailed notification is given in the document below.
[Notification No.: RBI/2025-26/227 DOR.CAP.REC.No.417/21.01.002/2025-26]
