The Reserve Bank of India has issued new amendments focusing on Credit Risk Management for Non-Banking Financial Companies, aiming to strengthen their risk management policies and procedures.
Credit Risk Management Amendments for Non-Banking Financial Companies
On April 29, 2026, the Reserve Bank of India (RBI) released the 'Non-Banking Financial Companies – Credit Risk Management Second Amendment Directions, 2026'. These amendments underscore the RBI's commitment to enhancing the risk management framework for non-banking financial companies (NBFCs).
Incorporating new guidelines that address the resolution of stressed assets, the amendments emphasize compliance with the regulatory requirements to improve overall stability within the financial sector. Sections referenced include 45JA, 45L, and 45M of the Reserve Bank of India Act.
Legal advisors representing NBFCs should ensure their clients are promptly updated to these amendments to align operational practices with RBI expectations, thus fostering a more stable financial environment.
Citations
- RBI Directions (2026) RBI Notification 13435
