Regulatory Alerts2026-07-16
Added · Updated
Reserve Bank of India (Urban Cooperative Banks – 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). Banks must not recognize accrued but unrealized interest or charges from extinguished exposures prior to SNFA acquisition, and must reverse any such income already recognized in their books by September 30, 2027. Additionally, any income received from an SNFA must be recognized as non-interest or other income in the financial year of realization, with related upkeep expenses accounted for in the year incurred. These amendments come into force on October 1, 2026.
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