Regulatory Alerts2026-07-16
Added · Updated
Reserve Bank of India (All India Financial Institutions – Income Recognition, Asset Classification and Provisioning) Second Amendment Directions, 2026
The directions insert new provisions into Chapter V regarding income recognition for the acquisition of Specified Non-Financial Assets (SNFA). Accrued but unrealised interest and charges from periods prior to SNFA acquisition must not be recognised as income upon acquisition, and any such income already recognised in the books of an All India Financial Institution (AIFI) as of September 30, 2026, must be reversed through the Profit and Loss account by September 30, 2027. Income received from an SNFA is to be recognised as non-interest or other income in the financial year of realization, with upkeep expenses accounted for in the year incurred. These amendments come into force with effect from October 01, 2026.