The Reserve Bank of India (RBI) has proposed lowering the risk weight on loans extended by non-banking financial companies (NBFCs) to certain operational infrastructure projects, aiming to reduce the capital burden on lenders and make long-term infrastructure financing more cost-effective.

In draft guidelines issued on Friday, the central bank said loans to “high-quality infrastructure projects,” where the borrower has already repaid at least 10% of the sanctioned amount, will attract a 50% risk weight. If the repayment is at least 5% but below 10%, the exposure will carry a 75% risk weight, compared to the current 100%.

The RBI has defined high-quality projects as those that have completed at least one year of satisfactory commercial operations and are classified as standard assets in t

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