The RBI (Non-Fund Based Credit Facilities) Directions 2025, consolidate and harmonize guidelines for non-fund based (NFB) facilities like guarantees and letters of credit. The document outlines a comprehensive framework for issuing NFB facilities, requiring a robust credit policy, and establishes specific conditions for guarantees and co-acceptances, including a ban on guaranteeing inter- company deposits. A key inclusion is a detailed framework for Partial Credit Enhancement (PCE) to improve the credit ratings of corporate bonds, allowing regulated entities to participate in and broaden infrastructure financing.