Mumbai, Oct 7
The Reserve Bank of India’s proposal to reduce risk weights for NBFCs lending to high-quality operational infrastructure projects will enhance future competitiveness, lower financing costs, and increase the lending capacity of NBFCs, a report said on Tuesday.
The report said that as NBFCs show growth in infrastructure lending, especially in the power sector, the measure supports long-term funding from institutional investors and strengthens the overall infrastructure financing ecosystem.
The proposed changes aim to fix this gap, which could reduce the cost of capital for completed infrastructure projects and encourage NBFCs to lend more in this space.
This move aligns with the RBI’s updated project finance guidelines that came into effect on October 1, 2025. These guidelines introduce stricter standards for projects that are still under construction. While the initial draft suggested a 5 per cent provisioning requirement, the final version has eased it to 1 per cent.