Regulatory Alerts2026-07-16
Added · Updated
Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026
The directions insert new definitions and prudential norms for specified non-financial assets (SNFAs), defined as immovable assets acquired by banks in satisfaction of claims on non-performing borrowers. Banks must limit SNFA holdings via internal policies, value assets at the lower of net book value or distress sale value, and dispose of them within seven years through public auctions without selling back to borrowers. Legacy SNFAs outstanding as of September 30, 2026, must achieve compliance by September 30, 2027, and the directions come into force on October 1, 2026.
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