The Reserve Bank of India raised the Large Exposure Limit for Upper Layer NBFC-Infrastructure Finance Companies from 35% to 45% of eligible capital base. The move targets India's largest, most capitalized infrastructure lenders—those with over ₹1 lakh crore in assets.
Mega-projects like national highways, ports, and green energy grids require capital at scale. The previous 35% cap forced infrastructure conglomerates to cobble together funding from multiple lenders, slowing approvals and deployment.
Under the new 45% threshold, a single top-tier NBFC can now write larger cheques to infrastructure giants, centralizing debt sourcing. This consolidation streamlines deal execution and removes the patchwork financing model that delayed project timelines.
The RBI's calibrated approach limits this expanded lending power to Upper Layer NBFCs only—the safest, most capitalized players. This guards against systemic risk while freeing room for India's infrastructure supercycle to accelerate.
