RBI Update - Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026

The Reserve Bank of India, through the Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Third Amendment Directions, 2026, has amended the Capital Adequacy Directions, 2025, to provide regulatory capital relief for exposures covered under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. By inserting a new Paragraph 18(2)(iv)(f), the amendment provides that exposures guaranteed under ECLGS 5.0 shall attract a zero percent risk weight to the extent of 75% of the guaranteed portion, representing the portion of the guarantee where the settlement amount is expected to be received within thirty days from the date of invocation. The balance exposure shall continue to attract risk weights in accordance with the extant prudential norms. Issued under Section 45L of the Reserve Bank of India Act, 1934, the amendment aligns the capital adequacy treatment applicable to Non-Banking Financial Companies (NBFCs) with the Government-backed ECLGS 5.0 framework and has come into force with immediate effect.