Document title: RBI issues Prudential Norms on Specified Non Financial Asset acquired by Regulated Entities

Issuing authority: Reserve Bank of India (RBI)

Reference number: Press Release 2026-2027/687

Date: July 16, 2026

Document Overview

The Reserve Bank of India issued final Prudential Norms on Specified Non‑Financial Assets (SNFA) on 16 July 2026. These final directions follow a draft released on 5 May 2026 and incorporate modifications based on stakeholder feedback. A detailed statement of the feedback received and the changes made is provided in an annex (PR68716072026_A.pdf).

Feedback and Consultation

The RBI examined all feedback submitted on the draft SNFA Directions and incorporated appropriate amendments. The annex outlines the nature of the feedback and the specific adjustments applied to the draft, ensuring that the final norms reflect stakeholder inputs.

Regulatory and Policy Measures

The final SNFA Directions are accompanied by a series of amendment notifications covering both Resolution of Stressed Assets and Income Recognition, Asset Classification and Provisioning for a wide range of regulated entities. The amendments are as follows:

  • Resolution of Stressed Assets:
  • Commercial Banks – Third Amendment Directions, 2026
  • Small Finance Banks – Second Amendment Directions, 2026
  • Non‑Banking Financial Companies (NBFCs) – Second Amendment Directions, 2026
  • All India Financial Institutions – Second Amendment Directions, 2026
  • Urban Co‑operative Banks – Third Amendment Directions, 2026
  • Rural Co‑operative Banks – Second Amendment Directions, 2026
  • Regional Rural Banks – Second Amendment Directions, 2026
  • Local Area Banks – Second Amendment Directions, 2026
  • Income Recognition, Asset Classification and Provisioning:
  • Commercial Banks – Second Amendment Directions, 2026
  • Small Finance Banks – Second Amendment Directions, 2026
  • NBFCs – Third Amendment Directions, 2026
  • All India Financial Institutions – Second Amendment Directions, 2026
  • Urban Co‑operative Banks – Second Amendment Directions, 2026
  • Rural Co‑operative Banks – Third Amendment Directions, 2026
  • Regional Rural Banks – Second Amendment Directions, 2026
  • Local Area Banks – Second Amendment Directions, 2026

These amendments collectively update the prudential framework governing the acquisition, holding, and valuation of specified non‑financial assets by regulated entities, as well as the treatment of stressed assets and provisioning standards across the banking and NBFC sectors.

The press release is signed by the Chief General Manager, Brij Raj, confirming the issuance of the final directions and the associated amendment notifications.

Overall, the RBI’s final SNFA Prudential Norms and the extensive set of amendment directions reinforce the regulatory oversight of asset quality, risk management, and capital adequacy for all categories of banks, NBFCs, and financial institutions.