Regulatory Alerts2026-07-16
Added · Updated
Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Second Amendment Directions, 2026
The directions insert new provisions into Chapter V regarding income recognition for Specified Non-Financial Assets (SNFA). Banks must not recognize accrued but unrealized interest or charges from extinguished exposures prior to SNFA acquisition as income, and must reverse any such recognized income through the Profit and Loss account by September 30, 2027. Income received from SNFA is to be recognized as non-interest income in the year of realization, with upkeep expenses accounted for in the year incurred. These amendments apply to commercial banks and come into force on October 1, 2026.
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