Reserve Bank of India (Core Investment Companies) Directions, 2025 (Updated as on March 10, 2026)
UR
- Applies toCore investment companies
- StatusIn force
- IssuedNov 28, 2025
- Last amendedMar 10, 2026 · 1 incorporated
- Length31 points in 2 sections · 3 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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Numbers to remember
| 90 percent | A CIC must hold at least 90 percent of its net assets in group company investments. RBI Para 3(1) |
| 60 percent | At least 60 percent of net assets must sit in group equity or InvIT units as sponsor. RBI Para 3(2) |
| three months | A CIC must apply for registration within three months of becoming one. RBI Para 15 |
| 30 percent | Adjusted net worth must stay at least 30 percent of risk-weighted assets. RBI Para 20 |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
1. Starts once posted online
These rules started the day RBI posted them on its own website.
2. The 90 percent group test
A CIC must hold at least 90 percent of its net assets in group company investments.
3. Or 60 percent as equity
At least 60 percent of net assets must sit in group equity or InvIT units as sponsor.
4. No trading, only block sale
It may not trade its group investments, except a block sale to exit them.
5. What counts as a CIC
RBI defines a CIC as a company with at least 100 crore rupees in total assets.
Chapter II. Role of Board of Directors and Registration
Must know
1. Board must set investment policy
The CIC board must approve its own investment policy.
2. Must register despite old advice
A CIC must apply for registration even if RBI once advised otherwise.
3. Apply within three months
A CIC must apply for registration within three months of becoming one.
4. Above 100 crore needs registering
Above 100 crore in assets, taking public funds without registering breaks these rules.
5. Only two layers per group
A group's CICs may have only two layers, counting the parent.
6. No third layer of CICs
A second-layer CIC that cross-holds another CIC creates a banned third layer.
Chapter III. Capital Requirements
1. 30 percent net worth rule
Adjusted net worth must stay at least 30 percent of risk-weighted assets.
BankPulse example. So a CIC with 100 crore in risk-weighted assets needs at least 30 crore in adjusted net worth.
2. Leverage ratio: 2.5 times
Outside liabilities may never exceed 2.5 times adjusted net worth.
BankPulse example. So a CIC with 40 crore in adjusted net worth works out to 100 crore in outside liabilities, using RBI's 2.5 times rule.
3. Judges its own capital need
A CIC must judge for itself how much capital its own risks need.
Chapter VI. Corporate Governance and Disclosure requirements
1. Fit and proper policy needed
A CIC must have a board-approved policy to vet its directors.
2. Quarterly fitness filing to RBI
A CIC must send RBI a quarterly statement on director fitness.
Chapter VII. Risk Management
Must know
1. Must appoint a risk officer
Every CIC must appoint its own Chief Risk Officer.
2. Needs its own risk committee
A CIC must also set up its own Risk Management Committee.
3. Group risk committee required
The lead CIC in a group must set up a Group Risk Management Committee.
4. Meets once a quarter
The group risk committee must meet at least once a quarter.
5. At least five GRMC members
The group risk committee needs a minimum of five members.
6. Two of them independent
At least two committee members must be independent directors.
7. Flags conflicts inside the group
The group risk committee must flag conflicts of interest inside the group.
8. Watches the group's leverage
The committee must track and watch the whole group's leverage.
9. Risk officer acts on findings
The Chief Risk Officer must act on the committee's own findings.
10. Quarterly deviation report to board
A CIC must give its board a quarterly statement on how it used raised funds.
Chapter VIII. Overseas Investment
1. No overseas branches, normally
A CIC is not normally allowed to open branches abroad.
Chapter XI. Repeal and Other Provisions
1. RBI's own reading is final
If a doubt comes up, RBI's own reading of these Directions is final.
2. Old CIC rules stand repealed
This rulebook replaces every earlier Core Investment Company direction and guideline.
3. Old rights and cases continue
Rights, penalties and legal cases begun before the repeal are not wiped out.
4. Other laws still apply
These Directions add to other laws and do not replace them.
How this rule has changed
The points above are the rule as it stands today, after every change listed here.
Issued on Nov 28, 2025. This is the date RBI put the rule out.
Changed on Mar 10, 2026.
- Start date. These amendment rules take effect at once from the issue date.
- Quarterly profits inclusion. Core Investment Companies can count quarterly profit in owned funds if they meet given checks.
- Quarterly review or audit. Statutory auditors must review or audit Core Investment Company quarterly financial statements in a limited way.
- Eligible profit formula. Core Investment Companies must use the given formula to find profit eligible for owned funds.