The proposals include clarifications on the computation of Owned Fund and Tier 1 Capital. The draft amendments also revise how Tier 1 Capital is to be reckoned for compliance with credit and investment concentration norms. A key proposal across the directions is the inclusion of quarterly profits in Owned Fund or Tier 1 Capital, subject to conditions such as limited review of quarterly financials by statutory auditors, adjustment for average dividends paid over the last three years, and full deduction of current-year losses. It also clarify that applicable capital for concentration norms should be based on the latest available audited or limited-reviewed financial statements. Certain entities are exempted from deducting Right-of-Use assets where the underlying leased asset is tangible.
(Link: Press Release RBI Draft Directions Dated 13/01/2026)
(Link: NBFC Prudential Norms Draft Directions Dated 13/01/2026)
(Link: NBFC Concentration Risk Draft Directions Dated 13/01/2026)
(Link: Housing Finance Companies Draft Directions Dated 13/01/2026)
(Link: Core Investment Companies Draft Directions Dated 13/01/2026)
(Link: Mortgage Guarantee Companies Draft Directions Dated 13/01/2026)
(Link: Asset Reconstruction Companies Draft Directions Dated 13/01/2026)
(Link: Standalone Primary Dealers Draft Directions Dated 13/01/2026)