RBI Update - Reserve Bank of India (Non-Banking Financial Companies– Credit Risk Management) Second Amendment Directions, 2026

The Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Second Amendment Directions, 2026, issued by the Reserve Bank of India, introduce a new requirement mandating that NBFCs incorporate the potential impact of natural calamities and similar disruptive events into their credit assessment processes. Specifically, the insertion of Paragraph 8A requires NBFCs to proactively evaluate how such adverse events may affect borrowers’ repayment capacity, thereby strengthening risk sensitivity and resilience in lending decisions. This amendment aligns with the broader framework under the Resolution of Stressed Assets Amendment Directions, 2026 dated April 29, 2026, and reflects a regulatory push towards more robust, forward-looking credit risk management practices in the NBFC sector.