Regulatory Alerts2026-07-16
Added · Updated
Reserve Bank of India (Rural Co-operative Banks – Income Recognition, Asset Classification and Provisioning) Third 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 exposures prior to SNFA acquisition as income, and any such income already recognized in books as of September 30, 2026, must be reversed through the Profit and Loss account by September 30, 2027. Additionally, income received from SNFA must be recorded as non-interest or other income in the year of realization, with upkeep expenses accounted for in the year incurred. These amendments become effective from October 1, 2026.
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