RBI makes it easier for NBFCs to fund big infrastructure projects
The Reserve Bank of India just made life simpler for non-banking finance companies (NBFCs) lending to high-quality infrastructure projects.
After listening to feedback, RBI has relaxed capital requirements, making it less of a headache for NBFCs to support roads, power plants, and other major builds.
What's actually changing?
Now, NBFCs can get away with holding less capital if their borrowers have repaid even a small chunk—just 2% repayment now qualifies loans for a 75% risk weight (it used to be 5%).
At 5% repayment, the risk drops further.
This means more money can flow into new projects without tying up so much in reserves.
Which projects count as "high-quality?"
To get these perks, a project needs a clean track record—running smoothly for at least a year with no slip-ups.
It also needs steady government-backed income and some financial safety nets like escrow accounts and lender protections.
When does this kick in—and why care?
The new rules start April 1, 2026 (or sooner if ready).
Ratings agency CareEdge says this will put NBFC rules on par with banks and help pump more funds into India's infrastructure dreams—which could mean better roads and services down the line.