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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934 (as applicable to Financial Sector)

RBI issues RBI (Non-Banking Financial Companies - Concentration Risk Management) Second Amendment Directions, 2026

10-Mar-2026 | RBI/2025-26/227 DOR.CAP.REC.No.417/21.01.002/2025-26

RBI has issued the RBI (Non-Banking Financial Companies - Concentration Risk Management) Second Amendment Directions, 2026.

Key Highlights:
1. Para 4(7) has been substituted, which states that the Owned Fund shall have the same meaning as given in Chapter II of the Reserve Bank of India (Non-Banking Financial Companies - Prudential Norms on Capital Adequacy) Directions, 2025.
2. Para 4(8) has been substituted which states that the Tier 1 capital" shall have the same meaning as given in Chapter II of the Reserve Bank of India (Non-Banking Financial Companies - Prudential Norms on Capital Adequacy) Directions, 2025. However, for the purpose of concentration norms, the NBFC shall obtain an external auditor's certificate on completion of the augmentation of capital and submit the same to the Department of Supervision of the RBI before reckoning the additions to capital funds.
3. New Paras 14(3) and 14(4) have been inserted, which states that the applicable Tier 1 Capital for compliance with the norms stated in paragraphs 13 and 14 shall be determined based on the NBFC's latest available financial statements (audited or subject to limited review) and is defined in paragraph 10 of the Reserve Bank of India (Non-Banking Financial Companies - Prudential Norms on Capital Adequacy) Directions, 2025.

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