RBI Extends NBFC-IFC Large-Exposure Limits to Upper-Layer IDF-NBFCs
Regulatory update | 25 August 2026
Key development: The Reserve Bank of India has made the large-exposure limits applicable to Infrastructure Finance Companies applicable also to Infrastructure Debt Fund-NBFCs that fall within the Upper Layer of the scale-based regulatory framework.
| Authority | Reserve Bank of India |
| Instrument | RBI (Non-Banking Financial Companies – Concentration Risk Management) Fourth Amendment Directions, 2026 |
| Reference | RBI/2026-27/237; DOR.CRE.REC.210/07-03-008/2026-27 |
| Effective date | 25 August 2026, with immediate effect |
What the amendment changes
The RBI has inserted paragraph 39A after paragraph 39 in Chapter IV of the 2025 Concentration Risk Management Directions. The new provision states that the large-exposure limits applicable to an NBFC-IFC will also apply to an IDF-NBFC that is subject to Upper-Layer regulation.
The cross-reference is to paragraph 60A of the RBI (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025, read with paragraph 18(4)(i) of the corresponding Commercial Banks Directions. The amendment therefore operates within the existing scale-based regulatory architecture rather than creating a separate exposure-limit regime for IDF-NBFCs.
Legal basis and status
The RBI issued the amendment under Chapter III-B of the Reserve Bank of India Act, 1934 and other enabling provisions. It is a binding amendment direction, not a consultation paper or draft proposal, and came into force immediately on 25 August 2026.
Practical significance
- Upper-Layer IDF-NBFCs must apply the NBFC-IFC large-exposure limits when measuring and monitoring concentration risk.
- Boards, risk committees and compliance teams should update exposure policies, internal limits, monitoring dashboards and breach-escalation protocols.
- Institutions should verify the classification of counterparties and connected groups, because the operative change concerns prudential concentration limits rather than only disclosure.
Official source
The full amendment is available on the Reserve Bank of India’s official notification page.
This report is for general legal information only and does not constitute legal, regulatory or financial advice.