---
title: "Revised Concentration Risk Framework for Upper Layer IDF-NBFCs"
date: 2026-09-30
author: "Ajay KSK"
url: https://ksandk.com/newsletter/revised-concentration-risk-framework-for-upper-layer-idf-nbfcs/
---

# Revised Concentration Risk Framework for Upper Layer IDF-NBFCs

Posted On - 30 September, 2026 • By - Ajay KSK

RBI has amended the concentration risk framework applicable to Infrastructure Debt Fund – Non-Banking Financial Companies (“IDF-NBFCs”) classified in the Upper Layer of the scale-based regulatory structure.

The Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Fourth Amendment Directions, 2026 introduce a new paragraph 39A, under which an Upper Layer IDF-NBFC will be subject to the large exposure limits applicable to an NBFC-Infrastructure Finance Company (“NBFC-IFC”), instead of the standard concentration limits applicable to Upper Layer NBFCs.

The amendment provides greater exposure headroom for affected IDF-NBFCs, subject to the limits applicable to NBFC-IFCs. IDF-NBFCs that are not in the Upper Layer, as well as other categories of NBFCs, are not affected by this amendment.

Affected entities should review their internal exposure limits, risk-management policies, monitoring systems and Board-approved risk appetite statements to align them with the revised framework.

*Last Updated on 29 September, 2026*

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