Current · Source: Reserve Bank of India · RBI/2013-14/172 · issued 02 Aug 2013 · ~1 min read
Quick answerRBI has expanded the definition of 'infrastructure loan' for NBFCs to include capital dredging, slurry pipelines, and telecom services, effective immediately. This aligns with the government's updated Harmonised Master List of Infrastructure sub-sectors.
The rule, in the simplest words
NBFCs (Non-Banking Financial Companies, which are like banks that don't take deposits) can now give loans for capital dredging (digging underwater to make ports deeper), slurry pipelines (pipes that move thick mixtures like coal and water), and telecom services (phone and internet services).
These three new types of loans count as 'infrastructure loans', which might get special, easier rules from the RBI (India's central bank).
This change starts right away, so NBFCs must update their systems to label these loans correctly.
How it plays out — a real example
An NBFC compliance officer in Indore, Priya, reviews her NBFC's loan portfolio after the RBI's new rule. She finds a recent loan to a company building a slurry pipeline to transport iron ore. Priya reclassifies this loan as an 'infrastructure loan', which allows her NBFC to offer better terms and attract more business in the pipeline sector.
What changed
The definition of 'infrastructure loan' under the NBFC Prudential Norms Directions, 2007 has been amended to include three new sub-sectors: capital dredging under ports, slurry pipelines under water and sanitation, and telecommunication and telecom services under communication. These additions follow government notifications dated April 5, 2013 and May 9, 2013.
What it means for you
NBFCs can now classify lending to these new sub-sectors as infrastructure loans, which may qualify for preferential treatment under prudential norms. This expands the scope of eligible infrastructure financing, potentially increasing lending opportunities in ports, pipeline transport, and telecom infrastructure.
What you must do
Update internal loan classification systems to include the three new sub-sectors as infrastructure lending.
Review existing loan portfolios to identify any exposures that now qualify as infrastructure loans.
Ensure compliance with the revised definition in all new credit facilities from the effective date.
Train credit and risk teams on the expanded sub-sector list for accurate reporting.
Who it affects
All NBFCs engaged in infrastructure lending, NBFC credit and risk management teams, Borrowers in capital dredging, slurry pipelines, and telecom services
RBI’s words: “Please refer to our Circular DNBS.PD.CC.No. 354/03.10.001/2013-14 dated August 02, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/172
DNBS.PD.CC.No. 354/03.10.001/2013-14
August 02, 2013
All NBFCs
Dear Sir / Madam,
Financing of Infrastructure - Definition of 'Infrastructure Lending'
Government of India, vide its Gazette Notifications dated April 5, 2013 and May 9, 2013, has updated the Harmonised Master List of Infrastructure sub-sectors and added the following new sub-sectors to the Notification dated March 27, 2012:
Capital Dredging, under the sub-sector ‘Ports’. Slurry Pipelines Telecommunication & Telecom Services 2. Accordingly, the extant definition of infrastructure loan given in the NBFC Prudential Norms Directions, 2007 stands amended with immediate effect. The revised definition of 'infrastructure loan' is given in the Annex to this circular. Also please find enclosed the amending notification of date for meticulous compliance.
Yours faithfully,
(C. R. Samyuktha)
Chief General Manager
Annex
List of sub-sectors for ‘Infrastructure Lending’
"Infrastructure loan" means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors:
Sr.
No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/172 · issued 02 Aug 2013. The plain-English explanation above is BankPulse’s own independent summary.
Update internal loan classification systems to include the three new sub-sectors as infrastructure lending.
📜 Compliance
Review existing loan portfolios to identify any exposures that now qualify as infrastructure loans.
Ensure compliance with the revised definition in all new credit facilities from the effective date.
Train credit and risk teams on the expanded sub-sector list for accurate reporting.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (All NBFCs engaged in infrastructure lending, NBFC credit and risk management teams, Borrowers in capital dredging, slurry pipelines, and telecom services), your first concrete step on “NBFC Infrastructure Lending Definition Expanded” is: “Update internal loan classification systems to include the three new sub-sectors as infrastructure lending.” (RBI issued this 02 Aug 2013).
Action required: Update internal loan classification systems to include the three new sub-sectors as infrastructure lending.
Action required: Review existing loan portfolios to identify any exposures that now qualify as infrastructure loans.
Action required: Ensure compliance with the revised definition in all new credit facilities from the effective date.
Action required: Train credit and risk teams on the expanded sub-sector list for accurate reporting.
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=8287&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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