NBFC-ND-SI Repo in Corporate Debt Securities: RBI Clarifications
Current · Source: Reserve Bank of India · RBI/2010-11/166 · issued 11 Aug 2010 · ~2 min read
Quick answerRBI clarifies that only NBFCs-ND with asset size of Rs. 100 crore and above (NBFCs-ND-SI) can participate in repo transactions in corporate debt securities, following IDMD directions and accounting guidelines.
The rule, in the simplest words
Only NBFCs-ND (non-deposit taking NBFCs) with assets of Rs. 100 crore or more (called NBFCs-ND-SI) can do repo (a type of short-term loan using securities as collateral) in corporate debt securities.
You must follow the IDMD (Internal Debt Management Department of RBI) directions and accounting rules for repo transactions.
When you do a repo, you must use the same risk weights (how much extra money you need to keep safe) for the collateral and the other party as you do for normal loans.
You must show repo and reverse repo (the opposite side of a repo) balances in your accounts in schedules (special sections) just like banks do.
How it plays out — a real example
An NBFC compliance officer in Indore, Priya, works for an NBFC-ND-SI with assets of Rs. 150 crore. She wants to use some corporate bonds her NBFC holds to get a short-term loan from a bank via a repo. She first checks that her NBFC's asset size is above Rs. 100 crore, then follows the IDMD's repo directions and accounting guidelines. She also applies the correct risk weights for the bonds and the bank, and records the repo balance in a schedule similar to a bank's accounting format.
What changed
RBI issued clarifications on repo transactions in corporate debt securities for NBFCs-ND-SI. Eligible participants are limited to NBFCs-ND with asset size of Rs. 100 crore and above. Risk weights for credit and counterparty credit risk follow existing prudential norms. Balance classification in repo/reverse repo accounts must be done in relevant schedules similar to banks.
What it means for you
NBFCs-ND-SI can now engage in repo transactions in corporate debt securities, but must adhere strictly to IDMD directions and accounting guidelines. This opens a new liquidity management tool for large NBFCs, but requires careful compliance with risk weight and accounting norms. Banks dealing with these NBFCs should ensure counterparties meet eligibility criteria.
What you must do
Verify that your NBFC-ND has asset size of Rs. 100 crore and above before participating in repo transactions.
Comply with IDMD's Repo in Corporate Debt Securities Directions, 2010 and revised accounting guidelines of March 23, 2010.
Apply risk weights for credit risk on collateral and counterparty credit risk as per NBFC prudential norms.
Classify repo/reverse repo balances in schedules similar to bank accounting standards.
Who it affects
NBFCs-ND with asset size of Rs. 100 crore and above (NBFCs-ND-SI), Banks and financial institutions dealing with NBFCs in repo transactions, RBI's IDMD and supervisory teams
❓ Common questions
Which NBFCs are eligible for repo in corporate debt securities?
Only NBFCs-ND with asset size of Rs. 100 crore and above, i.e., NBFCs-ND-SI, are eligible as per this circular.
What risk weights apply to these repo transactions?
Risk weights for credit risk on collateral and counterparty credit risk follow the NBFC prudential norms directions, as applicable to the issuer or counterparty.
Do NBFCs need to follow any specific accounting for repo transactions?
Yes, NBFCs must follow IDMD's revised guidelines on uniform accounting for repo/reverse repo transactions issued on March 23, 2010, and classify balances in relevant schedules similar to banks.
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/166
DNBS.PD/ CC.No. 196 / 03.05.002 /2010-11
August 11, 2010
All NBFCs-ND with asset size of Rs. 100 crore and above
Dear Sir,
Ready Forward Contracts in Corporate Debt Securities
In terms of 'Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010' dated January 08, 2010 issued by Internal Debt Management Department (IDMD) of RBI, NBFCs registered with RBI (other than Govt companies as defined in Section 617 of the Companies Act, 1956) are eligible to participate in repo transactions in corporate debt securities. IDMD has also issued revised guidelines on uniform accounting for repo / reverse repo transactions on March 23, 2010.
2. NBFCs participating in such repo transactions shall comply with the Directions and accounting guidelines issued by IDMD. Certain clarifications are being made in this regard as given below.
Eligible participants
(i) NBFCs-ND with asset size of Rs. 100 crore and above (i.e. NBFCs-ND-SI).
Capital Adequacy
(ii) Risk weights for credit risk for assets that are the collateral for such transactions as well as risk weights for the counterparty credit risk shall be as applicable to the issuer / counterparty in the NBFC (non-deposit accepting or holding) Prudential Norms Directions, 2007 as amended from time to time.
Classification of balances in the accounts
(iv) Classification of balances in the various accounts viz; repo account, reverse repo account etc. shall be done in the relevant schedules similar to that of banks.
3. In all other matters related to such repo transactions, NBFCs-ND-SI shall follow the Directions and accounting guidelines issued by IDMD viz; Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010 dated January 08, 2010 and Revised Guidelines on Uniform Accounting for Repo / Reverse repo transactions on March 23, 2010 respectively.
Yours sincerely,
(Uma Subramaniam)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/166 · issued 11 Aug 2010. The plain-English explanation above is BankPulse’s own independent summary.
Apply risk weights for credit risk on collateral and counterparty credit risk as per NBFC prudential norms.
📜 Compliance
Verify that your NBFC-ND has asset size of Rs. 100 crore and above before participating in repo transactions.
Comply with IDMD's Repo in Corporate Debt Securities Directions, 2010 and revised accounting guidelines of March 23, 2010.
Classify repo/reverse repo balances in schedules similar to bank accounting standards.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (NBFCs-ND with asset size of Rs. 100 crore and above (NBFCs-ND-SI), Banks and financial institutions dealing with NBFCs in repo transactions, RBI's IDMD and supervisory teams), your first concrete step on “NBFC-ND-SI Repo in Corporate Debt Securities: RBI Clarifications” is: “Verify that your NBFC-ND has asset size of Rs. 100 crore and above before participating in repo transactions.” (RBI issued this 11 Aug 2010).
Action required: Verify that your NBFC-ND has asset size of Rs. 100 crore and above before participating in repo transactions.
Action required: Comply with IDMD's Repo in Corporate Debt Securities Directions, 2010 and revised accounting guidelines of March 23, 2010.
Action required: Apply risk weights for credit risk on collateral and counterparty credit risk as per NBFC prudential norms.
Action required: Classify repo/reverse repo balances in schedules similar to bank accounting standards.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5942&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.