The Reserve Bank of India has released draft amendment directions proposing clarifications and revisions to the computation of owned fund and Tier 1 capital for Non-Banking Financial Companies (NBFCs) and Asset Reconstruction Companies (ARCs), including how these measures are applied for credit and investment concentration norms. The draft would amend multiple existing master directions covering NBFC capital adequacy, NBFC concentration risk management, housing finance companies, core investment companies, mortgage guarantee companies, ARCs and standalone primary dealers. RBI notes that current requirements have NBFCs (other than NBFC-UL) and ARCs reckoning Tier 1 capital as at March 31 of the previous year for compliance with concentration norms, and that industry requests prompted a review of the relevant provisions. Stakeholder comments are invited until January 28, 2026 via the Reserve Bank’s ‘Connect 2 Regulate’ portal.
Reserve Bank of India 2026-01-13
Reserve Bank of India consults on draft amendments clarifying owned fund and Tier 1 capital for NBFCs and ARCs under concentration norms
The Reserve Bank of India has issued draft amendment directions to clarify and revise the computation of owned fund and Tier 1 capital for Non-Banking Financial Companies and Asset Reconstruction Companies, affecting credit and investment concentration norms. Stakeholder comments are open until January 28, 2026, via the Reserve Bank's 'Connect 2 Regulate' portal.