The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Second Amendment Directions, 2026, effective immediately, amending the Master Direction – Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Directions, 2025. The amendment revises the definitions of “Owned Fund” and “Tier 1 Capital” by aligning them with the definitions provided under the Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025. It further requires NBFCs to obtain an external auditor’s certificate after capital augmentation and submit it to RBI’s Department of Supervision before reckoning such additions for concentration norms. Additionally, new provisions clarify that Tier 1 capital for compliance with credit/investment concentration limits shall be determined based on the NBFC’s latest available financial statements (audited or subject to limited review).
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13312&Mode=0
