MANU/RMIC/0009/2024

Ministry : Reserve Bank of India

Department/Board : Department of Regulation

Circular No. : DOR.CRE.REC.70/21.01.003/2023-2024
                   RBI/2023-2024/112

Date : 15.01.2024

Notification/ Circulars Referred : Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 dated October 19, 2023 MANU/RMIC/0106/2023; Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 MANU/RMIC/0017/2021; circular on Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs dated October 22, 2021 MANU/RMIC/0135/2021; circular on 'Review of Prudential Norms - Risk Weights for Exposures guaranteed by Credit Guarantee Schemes (CGS)' dated September 07, 2022 MANU/RMIC/0149/2022

Subject: Banking

Citing Reference:
Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 dated October 19, 2023 MANU/RMIC/0106/2023  Referred

Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 MANU/RMIC/0017/2021  Referred

circular on Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs dated October 22, 2021 MANU/RMIC/0135/2021  Referred

circular on ?Review of Prudential Norms - Risk Weights for Exposures guaranteed by Credit Guarantee Schemes (CGS)? dated September 07, 2022 MANU/RMIC/0149/2022  Referred

All Non-Banking Financial Companies including Housing Finance Companies

Madam/ Dear Sir,

Credit/Investment Concentration Norms

1. Please refer to the following instructions, as amended from time to time: (i) paragraphs 32, 91 and 110.4.2 of Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 dated October 19, 2023 ("MD on NBFC"); and (ii) paragraph 20 of Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 ("MD on HFC").

2. The guidelines on Large Exposures Framework (LEF) are applicable to NBFC- Upper Layer (NBFC-UL) in terms of paragraph 110 of the MD on NBFC. The NBFC- Base Layer (NBFC-BL) and NBFC-Middle Layer (NBFC-ML) are, however, governed........