The update regulates non-bank financial companies (NBFCs) providing credit products, which directly matches the Strong Yes criteria for Lending Providers as a non-banking firm whose primary business is providing credit products.
Low confidence — REQUIRES HUMAN REVIEW. The update focuses on credit risk management procedures for NBFCs and does not involve investment services, asset management, or any investment-related angle.
Specialism
The amendment mandates new credit risk assessment procedures for NBFCs, requiring evaluation of calamity impacts on borrower repayment capacity, which constitutes a prudential standard governing financial soundness and risk management.
Mandatory inheritance: Prudential Standards requires the parent tag Governance to be applied, reflecting the regulatory framework governing NBFC risk management oversight.
2026-04-30 09:03:42·pthandapani@vixio.com
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Notifications - Reserve Bank of India
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TITLE: India's Reserve Bank Issues Second Amendment to Non-Banking Financial Company Credit Risk Management Directions
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On April 29, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Second Amendment Directions, 2026 (RBI/2026-27/71). The amendment modifies the existing credit risk management framework applicable to non-banking financial companies (NBFCs) operating in India.
The RBI, exercising powers conferred under sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934; sections 30A and 32 of the National Housing Bank Act, 1987; and section 3 read with sections 31A and 6 of the Factoring Regulation Act, 2011, introduced a new requirement for credit assessments conducted by NBFCs. The amendment inserts a new Paragraph 8A into the existing directions, requiring NBFCs to suitably factor in the possible impact of calamities on borrowers who may be impacted by such events when conducting credit assessments.
This amendment reflects the RBI's focus on strengthening risk management practices among NBFCs by ensuring that credit evaluation processes account for potential disruptions arising from calamities and their impact on borrower capacity to service debt obligations. The requirement applies to all NBFCs regulated under the RBI's framework, including housing finance companies and factoring companies.
The amendment comes into force with effect from July 1, 2026, providing NBFCs with a transition period to align their credit assessment procedures and systems with the new requirement.
Notifications - Reserve Bank of India Skip to main content Selected Selected Language हिंदी Search the Website Search Notifications ( 414 kb ) Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Second Amendment Directions, 2026 RBI/2026-27/71 DOR.STR.REC.60/21-04-048/2026-27 April 29, 2026 Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Second Amendment Directions, 2026 Please refer to Reserve Bank of India (Non-Banking Financial Companies – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026. 2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934; sections 30A and 32 of the National Housing Bank Act, 1987 and section 3 read with section 31A and section 6 of the Factoring Regulation Act, 2011, and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified. 3. These Amendment Directions modify the Directions as under: i. Paragraph 8A shall be inserted as under: 8A. Credit assessments carried out by a NBFC shall suitably factor in the possible impact of calamities on borrowers who may be impacted by such events. 4. The above amendment shall come into force with effect from July 1, 2026. (Vaibhav Chaturvedi) Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page