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NSFR: EXIM Bank, NaBFID Now National Development Banks

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2023-24/103 · issued 29 Dec 2023 · ~2 min read

Quick answerRBI has expanded the definition of National Development Banks (NDBs) for NSFR computation to include EXIM Bank and NaBFID. Loans to these entities with residual maturity ≥1 year and risk weight ≤35% now get a 65% RSF factor instead of 100%, easing liquidity requirements for banks.

What changed

RBI has added EXIM Bank and NaBFID to the list of National Development Banks (NDBs) under the NSFR framework, alongside NABARD, NHB, and SIDBI. Unencumbered loans to these NDBs with residual maturity of one year or more and a risk weight of 35% or lower under the Standardised Approach now attract a Required Stable Funding (RSF) factor of 65%, reduced from 100%.

What it means for you

Banks can now hold less stable funding against long-term loans to EXIM Bank and NaBFID, improving their NSFR ratios. This incentivizes lending to these development finance institutions by lowering the liquidity cost. The change aligns with RBI's goal to support infrastructure and export financing through these AIFIs.

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 your NSFR computation systems to include EXIM Bank and NaBFID as NDBs.
Reclassify existing unencumbered loans to these entities with residual maturity ≥1 year and risk weight ≤35% to apply the 65% RSF factor.
Review credit risk weights for loans to EXIM Bank and NaBFID to ensure they qualify for the lower RSF factor.
Communicate the change to your treasury and risk management teams for immediate implementation.

Who it affects

Scheduled Commercial Banks (excluding Payments Banks and RRBs), Treasury and ALM teams, Credit risk and Basel compliance departments, Lenders to EXIM Bank and NaBFID

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 03:55 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which institutions are now classified as National Development Banks for NSFR?

EXIM Bank and NaBFID have been added to the existing list of NABARD, NHB, and SIDBI, making a total of five NDBs under the NSFR framework.

What is the new RSF factor for loans to these NDBs?

Unencumbered loans with residual maturity of one year or more and a risk weight of 35% or lower now have an RSF factor of 65%, down from 100%.

When does this circular take effect?

The instructions are effective immediately from the date of the circular, December 29, 2023.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #148: DOR.LRG.REC.62/03.10.001/2023-24 — "Basel III Framework on Liquidity Standards Net Stable Funding Ratio (NSFR) - Review of National Development Banks" dated De”

📜 Read the original circular — full text as issued by RBI

RBI/2023-24/103
 DOR.LRG.REC.62/03.10.001/2023-24
 December 29, 2023
 Madam / Dear Sir,
 Basel III Framework on Liquidity Standards – Net Stable Funding Ratio (NSFR) – Review of National Development Banks
 Please refer to circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 on Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR) – Final Guidelines.
 2. NABARD, NHB and SIDBI are considered as National Development Banks (NDBs) under the extant NSFR framework. On a review, it has been decided that the other All India Financial Institutions (AIFIs) i.e. EXIM Bank and National Bank for Financing Infrastructure and Development (NaBFID) shall also be considered as NDBs for NSFR computation.
 3. Further, unencumbered loans to NDBs with a residual maturity of one year or more that would qualify for a 35 per cent or lower risk weight under the Standardised Approach for credit risk 1 shall be assigned a Required Stable Funding (RSF) factor of 65 per cent (as against 100 per cent currently).
 4. Accordingly, the select instructions have been amended as detailed in Annex .
 Applicability
 5. This circular is applicable to all Scheduled Commercial Banks (excluding Payments Banks and Regional Rural Banks).
 6. These instructions shall come into force with immediate effect.
 Yours faithfully
 (R. Lakshmi Kanth Rao)
Chief General Manager-in-Charge
 Annex
 Circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 on Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR) – Final Guidelines
 Sr. No.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/103 · issued 29 Dec 2023. 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=12587&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.