The Reserve Bank of India (RBI) on April 27, 2026, issued directions on Asset Classification, Provisioning, and Income Recognition for Commercial Banks.
The following has been stated: -
•Reserve Bank of India issued final Directions on Asset Classification, Provisioning and Income Recognition after reviewing stakeholder feedback on its October 2025 draft.
•Necessary changes have been incorporated, with a feedback summary provided in the Annex.
•Alongside, multiple amendments were issued, including: Resolution of Stressed Assets; Concentration Risk Management; Investment Portfolio; Credit Risk Management; Credit & Debit Cards; Asset Liability Management; Credit Facilities; Non-Operative Financial Holding Companies.
•Further amendments cover Financial Statements & Disclosures; Urban Cooperative Banks (Stressed Assets); Transfer & Distribution of Credit Risk; Wilful and Large Defaulters; and Capital Adequacy norms.
•A Repeal Direction for earlier Income Recognition, Asset Classification and Provisioning norms has also been issued.
•Separate norms for All India Financial Institutions will be issued later.
These Directions shall come into effect from April 01, 2027.
The detailed notification is given in the document below.
[Notification No.: 2026-2027/150]
