Regulatory Alerts2026-07-16
Added · Updated
All India Financial Institutions – Income Recognition, Asset Classification and Provisioning Second Amendment Directions, 2026
All India Financial Institutions (AIFIs) are now prohibited from recognizing accrued but unrealized interest or charges from extinguished exposures prior to the acquisition of a Specified Non-Financial Asset (SNFA) as income. Any such income recognized for SNFAs outstanding as of September 30, 2026, must be reversed through the Profit and Loss account by September 30, 2027, if unrealized. Income received from SNFAs must be recognized as 'non-interest / other income' when realized, and upkeep expenses accounted for when incurred. These amendments, issued by the Reserve Bank of India, come into force from October 01, 2026.
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