RBI master-direction RBI/DOR/2025-26/323 · 28 Nov 2025
Official title
Reserve Bank of India (All India Financial Institutions – Credit Facilities) Directions, 2025 (Updated as on July 15, 2026)
Summary
Check the official recordThese Directions consolidate credit facility regulations for All India Financial Institutions (AIFIs), including EXIM Bank, NABARD, NHB, SIDBI, and NaBFID. The framework covers board-approved policies, digital lending, project finance, non-fund based (NFB) facilities, and specific restrictions on infrastructure and NBFC financing. AIFIs must implement robust credit appraisal, monitoring, and risk management systems. Digital lending requirements mandate clear contractual arrangements with Lending Service Providers (LSPs), borrower protection, and data privacy standards. Project finance rules define project phases and prudential conditions for sanction and disbursement. NFB facilities, such as guarantees and co-acceptances, require strict adherence to internal ceilings and operational controls. These Directions repeal previous instructions while preserving existing obligations and legal proceedings.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
If you do not comply
RBI/DOR/2025-26/323
DOR.CRE.REC.242/07-01-007/2025-26
November 28, 2025
Previous Versions
Reserve Bank of India (All India Financial Institutions – Credit Facilities) Directions, 2025 (updated as on July 15, 2026)
Table of Contents
Introduction
Chapter I - Preliminary
A. Short Title and Commencement
B. Applicability
C. Definitions
Chapter II - Board Approved Policies
A. Role of Board
Chapter III - Digital Lending
A. General Requirements for AIFI-LSP Arrangements
B. Conduct and Customer Protection Requirements
C. Technology and Data Requirement
D. Reporting of Credit Information and DLAs
E. Loss sharing arrangement in case of default
F. General Provisions
Chapter IV - Project Finance
A. Phases of Projects
B. Prudential Conditions Related to Sanction
C. Prudential Conditions Related to Disbursement and Monitoring
D. Other Provisions
Chapter V - Non-Fund Based (NFB) Credit Facilities
A. General Conditions
B. Guarantees
C. Co-acceptances
D. Requirements for Other Specific Guarantees
E. Partial Credit Enhancement – Salient Features
F. Exclusions and Other Aspects
Chapter VI - Other Instructions on Credit Facilities
A. Restrictions on Finance to NBFCs
B. Restrictions on Infrastructure Financing
C. Other permissible exposures
D. Interest Rate on Export Credit
E. Other Instructions
F. Special Measures
Chapter VII - Repeal and other provisions
A. Repeal and saving
B. Application of other laws not barred
C. Interpretations
Annex I
Reserve Bank of India (Reserve Bank) is statutorily mandated to operate the credit system of the country to its advantage. In pursuit of this mandate, the Reserve Bank encourages innovation in the financial systems, credit products and delivery mechanisms while ensuring orderly growth, financial stability and the protection of depositors' and borrowers' interest. With the progressive deregulation of bank credit, prudential norms primarily serve as regulatory safeguards. These norms, issued from time to time, provide guidance to regulated entities (REs) on the design and delivery of credit-related products and services. These Directions consolidate the instructions issued to All India Financial Institutions viz., Export-Import Bank of India (EXIM Bank), National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB), Small Industries Development Bank of India (SIDBI), and National Bank for Financing Infrastructure and Development (NaBFID) on credit facilities.
Accordingly, in exercise of powers conferred by Section 45L of the Reserve Bank of India Act, 1934, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues these Directions hereinafter specified.
These Directions shall be called the Reserve Bank of India (All India Financial Institutions – Credit Facilities) Directions, 2025.
These directions shall come into effect immediately upon its issuance, unless indicated otherwise.
(i) 'Actual Date of Commencement of Commercial Operations' (actual DCCO) means the date on which the project is put to commercial use and completion certificate / provisional completion certificate / occupancy certificate (in case of CRE and CRE-RH projects) or its equivalent is issued to the concessionaire / project developer / promoter.
(ii) 'Annual Percentage Rate' (APR) means APR as defined under Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Directions, 2025.
(iii) 'Appointed Date' means the date, as defined in the concession agreement entered into between the concessionaire and the concession granting authority, on which the concession agreement comes into force in accordance with the terms outlined therein (applicable only in the case of infrastructure projects under Public Private Partnership (PPP) model).
(iv) 'Beneficiary' means the party in whose favour the non-fund based (NFB) facility is issued by an AIFI.
(v) 'Co-acceptance of bills' means an undertaking to make payment to the drawer of the bill (seller / exporter) on due date if the buyer / importer fails to make the payment on that date.
(vi) 'Credit Event': In the context of project finance exposures, shall be deemed to have been triggered on the occurrence of any of the following: (a) Default with any lender. (b) Any lender(s) determines a need for extension of the original / extended DCCO, as the case may be, of the project. (c) Expiry of original / extended DCCO, as the case may be. (d) Any lender(s) determines a need for infusion of additional debt. (e) The project is faced with financial difficulty as determined under the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Directions, 2025.
(vii) 'Default Loss Guarantee' (DLG) means a contractual arrangement, called by whatever name, between the bank and another entity, under which the latter guarantees to compensate the bank, for the loss due to default up to a certain percentage of the loan portfolio of the bank, specified upfront. Any other implicit guarantee of similar nature, linked to the performance of the loan portfolio of the bank and specified upfront, shall also be covered under the definition of DLG.
(viii) 'Digital Lending' means a remote and automated lending process, largely by use of seamless digital technologies for customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer service.
(ix) 'Digital Lending Apps / Platforms' (DLAs) means a mobile and / or web-based applications, on a standalone basis or as a part of suite of functions of an application with user interface that facilitate digital lending services. DLAs shall include applications of the bank as well as those operated by Lending Service Provider (LSP) engaged by bank for extending any credit facilitation services in conformity with extant outsourcing guidelines issued by the Reserve Bank.
(x) 'Date of Financial Closure' means the date on which the capital structure of the project, including equity, debt, grant (only in the case of infrastructure PPP projects) (if any), accounting for minimum 90 per cent of total project cost, becomes legally binding on all stakeholders.
Explanation: In the case of CRE-RH projects, lenders may reckon contingent sales receivables (if any) as part of promoters' contribution to the project.
(xi) 'Default' means the non-payment of debt (as defined in Insolvency and Bankruptcy Code (IBC), 2016) when whole or any part or instalment of the debt has become due and payable and is not paid by the debtor.
(xii) 'Extended DCCO': If the original DCCO is revised, then the revised DCCO shall be termed as the Extended DCCO.
(xiii) 'Guarantee' means a contract to perform the promise, or discharge the liability, of a third person in the contingent case of his non-performance or default, in terms of The Indian Contract Act, 1872.
(xiv) 'Guarantor' refers to the party which issues the guarantee.
(xv) 'Infrastructure Sector' shall include the sub-sectors included in the Harmonised Master List of Infrastructure sub-sectors issued by the Department of Economic Affairs, Ministry of Finance, Government of India.
(xvi) 'Interest During Construction' (IDC) means the interest accrued on debt provided by a lender and capitalised during the construction phase of the project.
(xvii) 'Lending Service Provider' (LSP) refers to an agent of the bank (including another bank) who carries out one or more of bank's digital lending functions, or part thereof, in customer acquisition, services incidental to underwriting and pricing, servicing, monitoring, recovery of specific loan or loan portfolio on behalf of the bank in conformity with extant outsourcing guidelines issued by the Reserve Bank.
Provided that, while entities offering only Payment Aggregator (PA) services in terms of the extant instructions issued by the Reserve Bank shall remain out of the ambit of Chapter III of these Directions, any PA also performing the role of an LSP shall comply with Chapter III of these Directions.
