The Reserve Bank of India has made amendments to the credit risk management approach for Non-Banking Financial Companies (NBFCs), focusing on robust handling of stressed assets.
RBI Amends Guidelines for Non-Banking Financial Companies on Credit Risk Management
On April 29, 2026, the Reserve Bank of India (RBI) established the "Non-Banking Financial Companies – Credit Risk Management Second Amendment Directions, 2026" to strengthen the regulatory framework applicable to NBFCs in managing credit risks.
The amendments notably align with previous directives aimed at the resolution of stressed assets, providing a consistent approach to risk management. They authorize NBFCs to enhance their strategies pertaining to the classification and management of credit risk.
These changes represent an essential step in ensuring that NBFCs remain well-equipped to handle financial distress while safeguarding the interests of stakeholders.
For legal counsel in the financial sector, staying updated on these amendments is critical for advising NBFC clients on compliance and operational modifications.
Citations
- Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Second Amendment Directions (2026)
