NBFC Loans
RBI moots 50-75% risk weights for NBFC loans to high-quality infra projects
This story was originally published at 19:46 IST on 24 October 2025
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--RBI issues draft norms on scale based regulations for NBFCs
NEW DELHI – The Reserve Bank of India has proposed levying 50-75% risk weights on exposures of non-banking financial companies to high-quality infrastructure projects. In a draft released Friday, the central bank has proposed imposing these risk weights from Apr. 1 and has sought feedback by Nov. 21.
The RBI has proposed 50% risk weight on NBFC loans to 'high-quality infrastructure projects' where the obligor has repaid at least 10% of the sanctioned amount. For such loans where the obligor has repaid at least 5% but less than 10% of the sanctioned amount, the central bank has proposed a 75% risk weight.
The RBI has defined 'high-quality infrastructure projects' as any infrastructure project that has completed at least one year of satisfactory operations post achievement of the date of completion of commercial operations. In such a project, the obligor's revenue must depend mainly on the central government or a public sector entity and the contractual provisions must provide for certainty regarding payments, the RBI said.
The RBI first announced the plan to rationalise risk weights for infrastructure lending by NBFCs on Oct. 1. "To reduce the cost of infrastructure financing by NBFCs, it is proposed to reduce the risk weights applicable to lending by NBFCs to operational, high quality infrastructure projects," RBI Governor Sanjay Malhotra had said. End
Reported by Shubham Rana
Edited by Ashish Shirke
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