RBI Amends NBFC Concentration Risk Norms

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  • Last Updated on 3 January, 2026

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NBFC Concentration Risk Amendment

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.

Click Here To Read The Full Press Release

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied