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RBI Issues Second Amendment Directions for Credit Risk Management in Non-Banking Financial Companies
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Reserve Bank of Indiabanking

RBI Issues Second Amendment Directions for Credit Risk Management in Non-Banking Financial Companies

May 31, 2026

The Reserve Bank of India has introduced second amendment directions aimed at strengthening credit risk management in Non-Banking Financial Companies (NBFCs).

NBFC Credit Risk Management Directions Amended

On April 29, 2026, the Reserve Bank of India (RBI) released the 'Non-Banking Financial Companies – Credit Risk Management Second Amendment Directions, 2026'. This directive aims to fortify the credit risk management practices within NBFCs.

The amendments provide updates on the regulatory framework concerning credit risk management, particularly in light of the recent financial scenarios affecting the sector. Empowered by sections 45JA, 45L, and 45M of the Reserve Bank of India Act, these updates seek to improve the entity’s approach to risk and asset management.

Legal practitioners representing NBFCs must stay informed about these changes to effectively guide clients on compliance issues and ensure that their credit risk management practices align with the updated regulatory expectations.

Citations

  • Reserve Bank of India Directions (2026) RBI/2026-27/71
Practice Areas:banking

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