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RBI Directives on Credit Risk Management for Non-Banking Financial Companies
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Reserve Bank of Indiabanking

RBI Directives on Credit Risk Management for Non-Banking Financial Companies

June 6, 2026

The RBI has issued amendments for credit risk management in Non-Banking Financial Companies, reinforcing regulatory requirements.

Amendments for Credit Risk Management in NBFCs

On April 29, 2026, the Reserve Bank of India (RBI) announced the 'Non-Banking Financial Companies – Credit Risk Management Second Amendment Directions, 2026', designed to fortify the existing regulatory framework for credit risk management among NBFCs.

The amendments relate back to the resolution of stressed assets and consolidate compliance measures under sections 45JA, 45L, and 45M of the Reserve Bank of India Act, emphasizing the need for a stringent approach to credit risk assessments.

Legal experts should guide NBFCs in aligning their internal risk management policies with the new directives to ensure compliance and mitigate exposure to financial instability.

Citations

  • RBI/2026-27/71, DOR.STR.REC.60/21-04-048/2026-27
Practice Areas:banking

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