Summary: The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Fourth Amendment Directions, 2026 on August 25, 2026, bearing reference number DOR.CRE.REC.210/07-03-008/2026-27. The amendment revises the large exposure framework applicable to Infrastructure Debt Fund-Non-Banking Financial Companies (IDF-NBFCs) that are subject to Upper Layer regulations.
The amendment follows a review of the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Directions, 2025, issued on November 28, 2025. The 2025 Directions constitute the underlying concentration-risk framework for NBFCs and contain provisions relating to large exposures and exposure limits.
The Fourth Amendment Directions provide that the large exposure limits applicable to NBFC-IFCs shall also apply to IDF-NBFCs that are subject to Upper Layer regulations. This provision is being introduced as a new paragraph 39A in Chapter IV, titled “Guidelines Applicable to NBFC – Upper Layer”, immediately after paragraph 39.
The new paragraph 39A is linked to paragraph 60A of the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 and paragraph 18(4)(i) of the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025. The latter framework is issued under Section 35A of the Banking Regulation Act, 1949 and provides the relevant framework for commercial banks’ undertaking of financial services. ([TaxGuru][1])
The Fourth Amendment Directions are issued in exercise of powers conferred by Chapter III B of the Reserve Bank of India Act, 1934 and other enabling provisions/laws. They are expressly stated to come into force with immediate effect.
The practical regulatory change is that IDF-NBFCs falling within the Upper Layer are expressly brought within the same large exposure limits applicable to NBFC-IFCs. The supplied amendment does not specify any separate numerical exposure limit in the newly inserted paragraph 39A; rather, it makes the existing large exposure limits applicable to NBFC-IFCs applicable to the specified IDF-NBFCs as well. The amendment therefore modifies the concentration-risk framework by extending the applicability of the relevant NBFC-IFC large exposure limits to the identified IDF-NBFCs.
Reserve Bank of India
RBI/2026-27/237
DOR.CRE.REC.210/07-03-008/2026-27 | Dated: August 25, 2026
Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Fourth Amendment Directions, 2026
The Reserve Bank has issued the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Directions, 2025 dated November 28, 2025 (hereinafter referred to as ‘Directions’). On a review, it has been decided to revise the large exposure framework for Infrastructure Debt Fund-Non-Banking Financial Company (IDF-NBFC) in the Upper Layer.
2. Accordingly, in exercise of the powers conferred by Chapter III B of the Reserve Bank of India Act, 1934, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
3. These Amendment Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Fourth Amendment Directions, 2026.
4. These Amendment Directions shall come into force with immediate effect.
5. These Amendment Directions shall modify the Directions as under:
(1) After paragraph 39 in ‘Chapter IV – Guidelines Applicable to NBFC – Upper Layer’, a new paragraph 39A shall be inserted as under:
39A. The large exposure limits applicable to NBFC-IFC shall also be applicable to IDF-NBFC that are subject to Upper Layer regulations in terms of paragraph 60A of the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 read together with paragraph 18 (4) (i) of the Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) Directions, 2025.
(Dr. Sudarsana Sahoo)
Chief General Manager
