The Reserve Bank of India (RBI) has issued the final Prudential Norms on Specified Non-Financial Assets (SNFA) for regulated entities after considering stakeholder feedback received on the draft directions issued on May 5, 2026. The revised framework incorporates appropriate changes based on the comments received.
The following has been stated:
RBI has finalized the Prudential Norms on Specified Non-Financial Assets (SNFA) along with a statement summarizing the feedback received on the draft directions.
To implement the framework, RBI has issued amendment directions across various regulatory frameworks governing Commercial Banks, Small Finance Banks, Non-Banking Financial Companies (NBFCs), All India Financial Institutions (AIFIs), Urban Co-operative Banks, Rural Co-operative Banks, Regional Rural Banks (RRBs), and Local Area Banks.
The amendments cover both the Resolution of Stressed Assets and the Income Recognition, Asset Classification and Provisioning (IRACP) directions applicable to the respective regulated entities.
The revised prudential framework aims to establish a uniform regulatory treatment for Specified Non-Financial Assets (SNFA) acquired by regulated entities while strengthening prudential norms relating to asset resolution, recognition and provisioning.
