The Reserve Bank of India (RBI) on June 24, 2026, issues Amendment Directions on review of methodology for identification of NBFC-UL and inclusion of Government owned NBFCs in NBFC-UL’ and ‘Credit/Investment Concentration Norms – Government owned NBFCs.
The Reserve Bank of India (RBI) had earlier issued draft amendment directions on April 10, 2026, proposing changes to the methodology for identifying NBFCs in the Upper Layer (NBFC-UL), including setting a clear threshold of ₹1,00,000 crore in asset size. The draft also proposed inclusion of eligible Government-owned NBFCs in the Upper Layer category and allowing such NBFCs to use State Government guarantees as a credit risk transfer instrument without limits, subject to conditions. Additionally, a separate draft circular proposed withdrawal of exemptions granted to Government NBFCs from credit and investment concentration norms.
After reviewing stakeholder feedback received on these draft proposals, the RBI has finalized the amendments with suitable modifications. The feedback and corresponding changes have been documented in Annexes accompanying the final directions.
Accordingly, the RBI has issued multiple amendment directions covering key areas such as registration and regulatory framework under scale-based regulation, concentration risk management, governance standards, and financial statement presentation and disclosures for NBFCs.
These amendments aim to enhance transparency, strengthen regulatory oversight, and ensure a more uniform and robust framework for NBFCs, including Government-owned entities.
[Press Release: 2026-2027/530]
