RBI adds telecom towers to infrastructure loan definition
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/432 · issued 16 Mar 2011 · ~2 min read
Quick answerRBI now classifies telecom towers as an infrastructure facility for availing credit facility under NBFC prudential norms. This expands the eligible asset base for infrastructure loans and aligns NBFC prudential norms with the updated definition.
The rule, in the simplest words
Banks and NBFCs (non-bank lenders) can now treat loans for telecom towers (the tall metal structures that hold phone antennas) as 'infrastructure loans' (special loans for big public projects).
Only credit rating agencies (companies that check if a borrower is safe) that are approved by RBI (the central bank) can give ratings to Infrastructure Finance Companies (special lenders for big projects).
For deposit-taking NBFCs (lenders that take savings from people), the rule no longer lists 'building schools and hospitals' as infrastructure (so those loans may not get the same special treatment).
How it plays out — a real example
An NBFC compliance officer in Indore reviews a loan request from a telecom company to build 50 new towers. Thanks to the RBI update, she can now classify this loan as an 'infrastructure loan', which means better loan terms and lower risk weight for her NBFC. She also double-checks that the company's credit rating comes from an RBI-approved agency like CRISIL or ICRA, not a random firm.
What changed
RBI amended the definition of 'Infrastructure Loan' in the 2007 Prudential Norms Directions for both deposit-taking and non-deposit-taking NBFCs to include 'Telecom Towers' as an infrastructure facility. Additionally, the requirement for credit rating agencies for Infrastructure Finance Companies was clarified: only RBI-approved credit rating agencies can assign ratings, replacing the earlier phrase 'accredited CRAs' with 'credit rating agency accredited by RBI'. Also, for deposit-taking NBFCs, the sub-clause 'construction of educational institutions and hospitals' was omitted from the infrastructure definition.
What it means for you
NBFCs can now classify loans for telecom towers as infrastructure loans, potentially benefiting from preferential treatment under prudential norms. The clarification on credit rating agencies ensures that only RBI-approved agencies can rate IFCs, tightening the oversight on rating validity for these companies.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal loan classification systems to include telecom towers under infrastructure loans.
Review existing telecom tower loan portfolios to reclassify them as infrastructure loans if eligible.
Ensure that any credit rating used for IFC classification is from an RBI-accredited agency.
Train credit and compliance teams on the revised definition and rating requirements.
Who it affects
All NBFCs (deposit-taking and non-deposit-taking), Infrastructure Finance Companies (IFCs), Credit rating agencies operating in India
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 02:18 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular apply to banks directly?
No, this circular is addressed to all NBFCs. However, banks that lend to NBFCs for telecom infrastructure may see changes in how those loans are classified by the NBFC.
When did this change take effect?
The amendment was issued on March 16, 2011, and came into effect immediately from that date.
What is the significance of the credit rating agency change?
It clarifies that only RBI-accredited credit rating agencies can rate Infrastructure Finance Companies, ensuring consistency and regulatory oversight in the rating process.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/432
DNBS (PD) CC. No.213/03.10.001/2010-2011
March 16, 2011
All NBFCs
Dear Sir
Amendment to Definition of Infrastructure Loan
The term “Infrastructure Loan” has been defined in Para 2(viii) of Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 and Non-Banking Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, respectively. It has now been decided to include “Telecom Towers” also as an infrastructure facility for availing credit facility.
2. It may further be clarified that only Credit Rating Agencies(CRAs) approved by the Reserve Bank can give the rating to Infrastructure Finance Companies(IFCs) in terms of DNBS.PD.CC.No.168/03.02.089/2009-10 dated February 12, 2010 . Accordingly it has been decided to substitute “credit rating agency accredited by RBI” in place of “accredited CRAs” in Paragraph19A (iii) of the Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, issued vide Notification No. DNBS.193/DG (VL)-2007 dated February 22, 2007 and amended from time to time.
3. Amending Notifications No.DNBS(PD)226/CGM(US)2011 amending Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 and No.DNBS(PD)225/CGM(US)2011 amending Non-Banking Financial (Non- Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, 2007 are enclosed for meticulous compliance.
Yours faithfully
(Uma Subramaniam)
Chief General Manager-In-Charge
RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification No.DNBS(PD).225/CGM(US)-2011 dated March 16, 2011
The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007(hereinafter referred to as the said Directions), contained in Notification No. DNBS. 193/DG(VL)-2007 dated February 22, 2007, in exercise of the powers conferred by section 45JA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby directs that the said Directions shall be amended with immediate effect as follows, namely -
1. Amendment of paragraph 2 –
In sub-clause (e) of clause (viii) in sub-paragraph (1) of the said Directions, the term “Telecom Towers” shall be inserted before the term “network of trunking”.
2 . Amendment of paragraph 19A –
The existing clause (iii) shall be substituted with the following viz.,
“ (iii) have obtained a minimum credit rating 'A' or equivalent of CRISIL, FITCH, CARE, ICRA or equivalent rating by any other credit rating agency accredited by RBI "
(Uma Subramaniam)
Chief General Manager-in-Charge
RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification No. DNBS(PD).226/ CGM(US)-2011 dated March 16, 2011
The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (here in after referred to as the said Directions), contained in Notification No. DNBS.192/DG(VL)-2007 dated February 22, 2007, in exercise of the powers conferred by sections 45JA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby directs that the said Directions shall be amended with immediate effect as follows, namely -
1. Amendment of paragraph 2 –
i) In sub-clause (e) of clause (viii) in sub-paragraph (1) of the said Directions, the term “Telecom Towers” shall be inserted before the term “network of trunking”.
ii) The sub-clause (k) of clause (viii) in sub-paragraph (1) of the said Directions viz; 'construction of educational institutions and hospitals" shall be omitted.
(Uma Subramaniam)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/432 · issued 16 Mar 2011. The plain-English explanation above is BankPulse’s own independent summary.
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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=6291&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.
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