RBI finalises prudential norms for specified non-financial assets
The central bank issued final directions on SNFA treatment for all regulated entities, standardising asset classification and provisioning rules.
What changed
- Final directions issued after reviewing stakeholder feedback on May draft
- Applicable to commercial banks, SFBs, NBFCs, AIFIs, UCBs, RCBs, RRBs, and LABs
- Amends both Resolution of Stressed Assets and IRAC norms across all entity types
The read
The Reserve Bank of India has finalised prudential norms for Specified Non-financial Assets acquired by regulated entities. These directions, issued after incorporating feedback on the draft from May 5, 2026, amend the Resolution of Stressed Assets and Income Recognition, Asset Classification and Provisioning frameworks for 16 categories of regulated entities. By standardising how SNFA are classified and provisioned, the RBI aims to bring consistency across banks, NBFCs and cooperatives. The move reinforces the regulator's push for tighter asset quality discipline and clearer rules for assets acquired in resolution. For regulated entities, compliance will require updating internal processes to align with the new norms. The verdict: a long-awaited regulatory harmonisation that closes a gap in stressed asset resolution.
Key numbers
- Draft issued: May 05, 2026
- Press Release: 2026-2027/687
Primary source: rbi.org.in