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ARTICLE · 27 JULY 2026

RBI Prescribes Prudential Norms For Specified Non-Financial Assets

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On 16 July 2026, the Reserve Bank of India issued amendment directions to the Reserve Bank of India (Commercial Banks - Resolution of Stressed Assets) Directions, 2025 (Directions) applicable to commercial banks, small finance banks, urban co-operative banks, rural co-operative banks, regional rural banks, local area banks, non-banking financial companies and All India Financial Institutions (collectively, the Regulated Entities).

IndiaFinance and Banking
Rahul Chakraborti
Rahul Chakraborti
Abhay Agarwal
Abhay Agarwal
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On 16 July 2026, the Reserve Bank of India issued amendment directions to the Reserve Bank of India (Commercial Banks - Resolution of Stressed Assets) Directions, 2025 (Directions) applicable to commercial banks, small finance banks, urban co-operative banks, rural co-operative banks, regional rural banks, local area banks, non-banking financial companies and All India Financial Institutions (collectively, the Regulated Entities).

The Directions prescribe a harmonised prudential framework for immovable assets acquired by Regulated Entities in satisfaction or part satisfaction of their claims against borrowers, referred to as specified non-financial assets (SNFAs). The Directions which will come into force on 1 October 2026 introduces clear conditions for acquisition and imposes an outer limit for disposal, while requiring Regulated Entities to formulate internal policies governing such transactions.

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