The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Amendment Directions, 2026, inserting a provision to paragraph 4(4) of the 2025 Directions to define “high-quality infrastructure projects” for NBFCs. Infrastructure lending shall be classified as high-quality where the project has completed at least one year of operations after the date of commencement of commercial operations without any breach of material covenants, the exposure is classified as standard, and project revenues arise from concession or contractual rights granted by the Central or State Government, public sector entities, or statutory/regulatory bodies with protection throughout the concession period. Further, the contractual framework must provide strong lender protection, including escrow/Trust and Retention Account mechanisms, pari-passu charge over project assets, and adequate termination risk mitigation. The borrower must also have sufficient arrangements to meet funding requirements and be restricted from actions detrimental to lenders. The amendment shall apply from the date an NBFC implements the Prudential Norms on Capital Adequacy Amendment Directions, 2026, or April 1, 2026, whichever is earlier.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13245&Mode=0
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