The Reserve Bank of India (RBI), on February 13, 2026, issued the Reserve Bank of India (Rural Co-operative Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, to further amend the Reserve Bank of India (Rural Co-operative Banks – Income Recognition, Asset Classification and Provisioning) Directions, 2025.
The following has been amended namely:-
• Paragraph 52 shall be deleted.
• After paragraph 52, a new paragraph 52A shall be inserted, as under: 52A.The policy on income recognition should be based on record of recovery. A bank may recognise income, including interest, fee, commission or other income, on accrual basis in respect of credit facilities which are classified as ‘Standard’, without the requirement of making any matching provision. For credit facilities which are not classified as ‘Standard’, including those guaranteed by Government, income shall be recognized on actual receipt basis i.e. cash basis.
• Paragraphs 53 - 56 shall be deleted.
• Paragraph 58 shall be deleted.
[Notification No. RBI/2025-2026/208 DOR.STR.REC.411/21-04-048/2025-26]
