RBI amends NBFC-UL identification to include government-owned NBFCs in credit/investment concentration norms
NBFC compliance teams must apply NBFC-UL classification and credit/investment concentration limits to government-owned NBFCs
Change
On 24 June 2026, the Reserve Bank of India issued Amendment Directions revising the methodology for identifying NBFC-Upper Layer (NBFC-UL) and including government-owned NBFCs within NBFC-UL and within credit and investment concentration norms.
Why it matters
The amendment binds government-owned NBFCs to NBFC-UL status and places them within the RBI's credit and investment concentration framework. Operators that calculate exposure, concentration limits and statutory filings must expand their scope and identification inputs to include these entities under the revised NBFC-UL criteria.
Implications
- — Compliance and risk teams at government-owned NBFCs must reclassify their entities as NBFC-UL and apply RBI credit and investment concentration norms — failing to reclassify will leave concentration calculations and statutory reporting inconsistent with the Amendment Directions.
- — Regulatory reporting and classification teams at RBI‑supervised NBFCs must update identification-methodology inputs and reports to reflect the revised NBFC-UL criteria — until updated, identification outputs will not conform to the Reserve Bank's amended methodology.
Who is affected
- — Compliance and risk teams at government-owned NBFCs
- — Regulatory reporting and classification teams at RBI-supervised NBFCs