RBI proposes new infrastructure risk weights for NBFCs

THE RESERVE BANK of India (RBI) on Friday introduced targeted amendments to its scale-based regulation framework for non-banking financial companies (NBFCs), proposing a refined approach to risk weights for infrastructure exposure.

- MAHESH NAYAK

The 2025 amendments revise the risk weight structure with loans to high-quality infrastructure projects where the obligor who has repaid at least 10% of the sanctioned amount will attract a reduced risk weight of 50%.

If the repayment is between 5% and 10%, the risk weight increases to 75%.