Policy ID: PCI/POL/20/2026-27 • Version 1.0 Owner: Risk Head / CFO • Approver: Board of Directors Sources: CON, REG • Review: Annual / regulatory change
Purpose and application
Loans, investments, guarantees and connected counterparties; category/layer-specific ceilings apply.
1. Exposure aggregation:- Aggregate borrower and group funded/non-funded exposure and investments before sanction, disbursement or investment. Identify control relationships and economic interdependence where required. Keep a consistent counterparty identifier across branches.
2. Capital and limits:- CFO shall certify the correct regulatory denominator, exclusions and eligible capital additions. Apply the current 2025 Concentration Risk Directions as amended; do not apply one percentage to every NBFC layer. Board shall approve tighter internal limits.
3. Pre-transaction control:- Risk shall verify available headroom considering proposed and committed exposures. No loan splitting or interposed entity shall circumvent limits. System blocks shall prevent new exposure after a ceiling is reached unless a lawful exception is authorized.
4. Concentration monitoring:- Monitor geography, product, sector, collateral, large customers and funding sources monthly. Stress correlated defaults and capital erosion. Reduce excess exposure through a documented plan, restrict increases and promptly notify authorities when required.
5. Reporting and review:- Report regulatory/internal breaches to the Board/RMC promptly and include concentrations in quarterly dashboards. Retain calculations and approvals. Compliance shall refresh the regulatory limit register after amendments and annually confirm applicability.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.