RBI Policy
Plan draft norm to cut risk weights on loans by NBFC to infra projects
This story was originally published at 15:59 IST on 1 October 2025
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--RBI Malhotra: To reduce risk weights on NBFC lending to high-quality infra
MUMBAI – Reserve Bank of India Governor Sanjay Malhotra on Wednesday said the central bank will soon issue a draft guideline to reduce the risk weights on loans by non-banking financial companies to operational and high-quality infrastructure projects. Malhotra, while detailing the monetary policy decision, announced additional measures to strengthen the resilience and competitiveness of the banking sector. These measures included reducing the cost of infrastructure financing for non-banking finance companies.
"Infrastructure projects that have commenced operations typically exhibit lower risk compared to those under construction," Malhotra said. "Recognising this risk differential, the existing capital adequacy norms permit NBFCs to assign a lower risk weight to operational projects under public-private partnerships."
The RBI will introduce a principle-based framework to further rationalise the risk weights for infrastructure lending by NBFCs with the nuanced risk-profile of operational projects. The framework will aim to align risk weights with the actual risk characteristics of operational infrastructure projects, promote better risk assessment and capital allocation.
The system-level parameters of NBFCs are sound, with adequate capital and improved gross non-performing asset ratios, Malhotra said. End
Reported by Srijita Bose
Edited by Ashish Shirke
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