The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks – Income Recognition, Asset Classification and Provisioning) Directions, 2025.
The following has been stated:-
• A UCB shall classify a loan or an advance as a Standard asset or a nonperforming asset, as the case may be.
• A standard asset does not disclose any problems and does not carry more than the normal risk attached to the business. Such an asset should not be an NPA.
• A UCB shall flag a borrower account as overdue, if so, as part of their day-end processes for the due date, irrespective of the time of running such processes.
• Similarly, classification of borrower accounts as SMA as well as NPA shall be done as part of the day-end process for the relevant date, and the SMA or NPA classification date shall be the calendar date for which the day-end process is run. Thus, the date of SMA/NPA shall reflect the asset classification status of an account on the day-end of that calendar date.
[Notification no. RBI/DOR/2025-26/286 DOR.STR.REC.205./21.04.048 /2025-26]
