We at Finakon track the regulatory changes. We also use AI to create a summary. We are providing a quick overview of the RBI circulars on a weekly basis on our website. The summary is neither exhaustive nor comprehensive. For accurate information, users shall refer to the original circular of the regulator. Finakon shall not be responsible for inferences drawn based on the summary provided.
RBI Updates Concentration Risk Management Norms for UCBs
The Reserve Bank of India has issued the Reserve Bank of India (Urban Co-operative Banks – Concentration Risk Management) – Amendment Directions, 2026, revising the existing framework for Urban Co-operative Banks (UCBs).
The amendments redefine “unsecured advances” and “nominal members,” while introducing revised norms for unsecured lending exposure. Under the updated framework, aggregate unsecured advances of a UCB cannot exceed 20% of its total loans and advances, subject to specified exemptions for certain priority sector loans.
The Directions also revise provisions relating to loans granted to nominal members and remove select earlier exposure-related provisions. Existing non-compliant loans may continue till maturity but cannot be renewed or enhanced unless aligned with the amended Directions.
The amendments will come into effect from October 1, 2026, or earlier if adopted in entirety by the UCB along with related amendment directions issued by RBI.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13403
RBI Updates Credit Facility Norms for Urban Co-operative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Urban Co-operative Banks – Credit Facilities) – Amendment Directions, 2026, revising norms related to housing finance, credit facilities against deposits, and unsecured advances for Urban Co-operative Banks (UCBs).
The amendments prescribe revised housing loan tenor and moratorium norms, require Board-approved policies for housing loans and deposit-backed credit facilities, and prohibit UCBs from granting loans against deposits of other banks.
The revised directions also update unsecured advance limits to a single borrower as ₹5 lakh for Tier 1 UCBs, ₹7.5 lakh for Tier 2 UCBs, and ₹10 lakh for Tier 3 and Tier 4 UCBs.
The amendments will come into effect from October 1, 2026, or earlier if adopted in entirety by a UCB along with the related concentration risk management amendments.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13404
RBI Enhances Disclosure Requirements for Urban Co-operative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026, introducing additional disclosure requirements for Urban Co-operative Banks (UCBs).
The amendments require UCBs to disclose detailed information relating to unsecured advances and lending to nominal members in the Notes to Accounts section of financial statements. The disclosures include aggregate unsecured advances sanctioned and outstanding, exposure classifications such as Special Mention Accounts (SMAs) and Non-Performing Assets (NPAs), provisions held against unsecured advances, and details of unsecured priority sector loans up to ₹50,000.
The revised framework also mandates disclosure of loans sanctioned and outstanding to nominal members, along with the total number of nominal members and their proportion to regular members.
These amendments are linked to the revised concentration risk management framework and will come into effect from October 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13405
RBI Issues Compliance Advisory on Updated UNSC Taliban Sanctions List
The Reserve Bank of India has notified regulated entities regarding amendments to 17 entries in the United Nations Security Council (UNSC) 1988 Taliban Sanctions List under Section 51A of the Unlawful Activities (Prevention) Act (UAPA), 1967.
Based on communication from the Ministry of External Affairs, the updated sanctions list includes individuals and entities subject to asset freeze, travel ban, and arms embargo measures under UNSC Resolution 1988 (2011).
Regulated entities have been advised to ensure compliance with the RBI Know Your Customer Directions, 2025, verify accounts against the updated sanctions lists, and follow the prescribed procedures under the UAPA framework and related government directives.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13406
RBI Revises Registration and Exemption Framework for NBFCs
The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026, introducing revised regulatory norms for NBFCs not availing public funds and not having customer interface.
The amendments introduce new classifications including “Type I NBFC”, “Type II NBFC”, and “Unregistered Type I NBFC”, and prescribe revised registration, exemption, disclosure, and compliance requirements. Eligible NBFCs with asset size below ₹1,000 crore may seek exemption from certain registration provisions subject to specified conditions.
The amendments also align multiple RBI directions applicable to NBFCs with the revised framework and will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13407
RBI Revises Stressed Asset Resolution Framework for Calamity-Affected Borrowers
The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026, introducing a revised framework for resolution of borrower accounts impacted by natural calamities and similar disruptive events.
Effective July 1, 2026, the amendments add a new Chapter VI-A covering eligibility criteria, timelines, relief measures, and reporting requirements for banks implementing resolution plans for affected borrowers. The framework also defines the role of SLBCs, UTLBCs, and DCCs in assessing affected regions and recommending relief measures.
Banks may provide restructuring support, additional finance, payment rescheduling, and other relief measures based on borrower viability, including suo moto implementation in specified cases.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13408
RBI Updates Asset Classification and Provisioning Norms for Calamity-Related Loan Restructuring
The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, aligned with the revised framework for resolution of stressed assets impacted by calamities.
Effective July 1, 2026, the amendments allow borrower accounts restructured under the calamity resolution framework to continue as ‘Standard’ assets upon implementation of the resolution plan, including accounts that turned NPA between the calamity date and restructuring.
The directions also introduce additional provisioning requirements for banks undertaking such restructuring, including specific provisions for repeated restructuring cases. Further, the amendments prescribe conditions for reversal of additional provisions and clarify income recognition norms for restructured accounts.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13409
RBI Introduces Banking Service Measures for Calamity-Affected Areas
The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Amendment Directions, 2026, introducing measures to ensure continuity of banking services in areas affected by natural calamities and similar disruptive events.
Effective July 1, 2026, the amendments allow banks to operate affected branches from temporary premises and arrange alternative banking services through satellite offices, extension counters, or mobile banking facilities. Banks are also required to restore ATM services at the earliest and provide alternate cash access arrangements in affected areas.
The directions further permit banks to open small accounts for displaced individuals lacking identification documents and allow waiver or reduction of certain banking charges for customers in calamity-affected regions for up to one year.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13410
RBI Updates Credit Risk Assessment Framework for Calamity-Affected Borrowers
The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Credit Risk Management) Third Amendment Directions, 2026, introducing changes to credit risk assessment practices for banks.
Effective July 1, 2026, the amendments require banks to consider the potential impact of natural calamities and similar disruptive events while carrying out credit assessments of borrowers who may be affected by such events.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13413
RBI Introduces Calamity Resolution Framework for Small Finance Banks
The Reserve Bank of India has issued the Reserve Bank of India (Small Finance Banks – Resolution of Stressed Assets) Amendment Directions, 2026, introducing a revised framework for resolution of borrower accounts affected by natural calamities and similar disruptive events.
Effective July 1, 2026, the amendments add a new Chapter VI-A covering eligibility conditions, timelines, relief measures, and reporting requirements for Small Finance Banks implementing resolution plans for impacted borrowers. The framework also outlines the role of SLBCs, UTLBCs, and DCCs in assessing affected areas and recommending relief measures.
Under the revised framework, Small Finance Banks may provide restructuring support, repayment rescheduling, additional finance, and other relief measures based on borrower viability, including suo moto implementation in specified cases. Consequential amendments have also been issued relating to Credit Risk Management, Income Recognition and Asset Classification, and Responsible Business Conduct.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13412
RBI Updates Asset Classification and Provisioning Norms for Small Finance Banks
The Reserve Bank of India has issued the Reserve Bank of India (Small Finance Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, aligned with the revised framework for resolution of stressed assets impacted by calamities.
Effective July 1, 2026, the amendments allow borrower accounts restructured under the calamity resolution framework to continue as ‘Standard’ assets upon implementation of the resolution plan, including accounts that turned NPA during the calamity period before restructuring.
The directions also introduce additional provisioning requirements for Small Finance Banks undertaking such restructuring, including higher provisions for repeated restructuring cases. Further, the amendments clarify the norms for reversal of additional provisions and recognition of interest income on restructured accounts.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13414
RBI Introduces Banking Service Measures for Calamity-Affected Areas for Small Finance Banks
The Reserve Bank of India has issued amendments introducing measures to ensure continuity of banking services by Small Finance Banks in areas affected by natural calamities and similar disruptive events.
Effective July 1, 2026, the amendments permit Small Finance Banks to operate affected branches from temporary premises and provide alternative banking services through satellite offices, extension counters, or mobile banking facilities. Banks are also required to restore ATM services at the earliest and arrange alternate cash access facilities in affected regions.
The directions further allow banks to open small accounts for displaced individuals lacking identification documents and permit waiver or reduction of certain banking charges for customers in calamity-affected areas for up to one year.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13417
RBI Updates Credit Risk Assessment Framework for Small Finance Banks
The Reserve Bank of India has issued amendments to the credit risk management framework for Small Finance Banks, requiring banks to consider the potential impact of natural calamities and similar disruptive events while carrying out borrower credit assessments.
Effective July 1, 2026, the amendments mandate Small Finance Banks to factor in calamity-related risks while evaluating borrowers who may be affected by such events.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13419
RBI Introduces Calamity Resolution Framework for Local Area Banks
The Reserve Bank of India has issued the Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Amendment Directions, 2026, introducing a revised framework for resolution of borrower accounts affected by natural calamities and similar disruptive events.
Effective July 1, 2026, the amendments add a new Chapter IV-A covering eligibility conditions, timelines, relief measures, and reporting requirements for Local Area Banks implementing resolution plans for impacted borrowers. The framework also defines the role of SLBCs, UTLBCs, and DCCs in assessing affected areas and recommending relief measures.
Under the revised framework, Local Area Banks may provide restructuring support, repayment rescheduling, additional finance, and other relief measures based on borrower viability, including suo moto implementation in specified cases. Consequential amendments have also been issued relating to Credit Risk Management, Income Recognition and Asset Classification, and Responsible Business Conduct.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13411
RBI Revises IRACP Norms for Local Area Banks
The Reserve Bank of India has issued the Reserve Bank of India (Local Area Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, introducing changes linked to restructuring under Chapter IV-A of the Resolution of Stressed Assets Directions, 2025.
The amendments allow eligible restructured borrower accounts to retain or regain “Standard” asset classification upon implementation of a resolution plan. The directions also prescribe additional provisioning requirements of 5% for restructured accounts, including repeated restructuring cases, subject to specified limits and reversal conditions.
Further, interest income recognition for accounts restructured under Chapter IV-A will be on an accrual basis, while certain repeatedly restructured accounts will follow cash basis recognition.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13415
RBI Introduces Calamity Response Measures for Local Area Banks
The Reserve Bank of India has issued the Reserve Bank of India (Local Area Banks – Responsible Business Conduct) Amendment Directions, 2026, following the Resolution of Stressed Assets Amendment Directions, 2026 dated April 29, 2026.
The amendment introduces provisions under the Financial Inclusion and Accessibility framework relating to banking services during declared calamities.
Key measures include:
- Permission for banks to operate calamity-affected branches from temporary premises, subject to regulatory intimation and approvals.
- Arrangements for continued banking access through satellite offices, extension counters, mobile banking facilities, and similar channels.
- Immediate restoration of ATM services and alternative cash access arrangements in affected areas.
- Facilitation for opening small accounts for displaced persons who may not have access to identification or personal records.
- Discretion for banks to waive or reduce customer fees and charges in calamity-affected areas for a period of up to one year.
The amendment directions will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13420
RBI Updates Credit Risk Evaluation Norms for Local Area Banks
The Reserve Bank of India has issued the Reserve Bank of India (Local Area Banks – Credit Risk Management) Second Amendment Directions, 2026, following the Resolution of Stressed Assets Amendment Directions, 2026 dated April 29, 2026.
The amendment introduces a new chapter on Credit Risk Evaluation, requiring Local Area Banks to consider the potential impact of calamities on borrowers while carrying out credit assessments.
The amendment directions will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13422
RBI Revises Stressed Asset Resolution Framework for Urban Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Urban Cooperative Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026, introducing a new framework for resolution of borrower accounts impacted by natural calamities and similar external events.
The amendments provide for restructuring measures for eligible borrowers, including rescheduling of payments, conversion of interest into credit facilities, and additional finance based on viability assessment. Banks are also required to incorporate calamity-related resolution provisions in their board-approved policies and follow prescribed timelines for implementation.
The framework further includes provisions relating to suo moto relief measures, consideration of insurance and government relief support, simplified financing documentation for affected agricultural borrowers, and periodic reporting requirements.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13416
RBI Revises IRACP Norms for Urban Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Urban Cooperative Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, introducing revised norms linked to restructuring under Chapter IV-A of the Resolution of Stressed Assets Directions, 2025.
The amendments allow eligible restructured borrower accounts to retain or regain “Standard” asset classification upon implementation of a resolution plan. The directions also prescribe additional provisioning requirements of 5% for restructured accounts, including repeated restructuring cases, subject to specified limits and reversal conditions.
Further, interest income for accounts restructured under Chapter IV-A will be recognized on an accrual basis, while certain repeatedly restructured accounts will follow cash basis recognition.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13418
RBI Introduces Calamity Response Measures for Urban Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Urban Cooperative Banks – Responsible Business Conduct) Amendment Directions, 2026, introducing measures relating to banking services during declared calamities.
The amendments permit Urban Cooperative Banks to operate affected branches from temporary premises and provide banking access through satellite offices, extension counters, and mobile banking facilities, subject to regulatory intimation and approvals.
The directions also require banks to restore ATM services at the earliest and arrange alternative cash access facilities in affected areas. Further, banks may open small accounts for displaced persons lacking identification documents and may provide waiver or reduction of fees and charges for customers in calamity-affected areas for up to one year.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13421
RBI Updates Credit Risk Evaluation Norms for Urban Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Urban Cooperative Banks – Credit Risk Management) Second Amendment Directions, 2026, introducing a new provision relating to credit risk evaluation.
The amendment requires Urban Cooperative Banks to consider the potential impact of natural calamities and similar events on borrowers while carrying out credit assessments.
The amendment directions will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13423
RBI Revises Stressed Asset Resolution Framework for Regional Rural Banks
The Reserve Bank of India has issued the Reserve Bank of India (Regional Rural Banks – Resolution of Stressed Assets) Amendment Directions, 2026, introducing a revised framework for resolution of borrower accounts impacted by natural calamities and similar external events.
The amendments provide for restructuring measures for eligible borrowers, including rescheduling of payments, conversion of interest into credit facilities, and additional finance based on viability assessment. The framework also includes board-approved relief policies, coordination through SLBC/UTLBC/DCC mechanisms, prescribed implementation timelines, and reporting requirements through the CIMS portal.
Consequential amendments have also been issued relating to Credit Risk Management, IRACP, and Responsible Business Conduct for Regional Rural Banks.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13426
RBI Revises IRACP Norms for Regional Rural Banks
The Reserve Bank of India has issued the Reserve Bank of India (Regional Rural Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, introducing revised norms linked to restructuring under Chapter IV-A of the Resolution of Stressed Assets Directions, 2025.
The amendments allow eligible restructured borrower accounts to retain or regain “Standard” asset classification upon implementation of a resolution plan. The directions also prescribe additional provisioning requirements of 5% for restructured accounts, including repeated restructuring cases, subject to specified limits and reversal conditions.
Further, interest income for accounts restructured under Chapter IV-A will be recognized on an accrual basis, while certain repeatedly restructured accounts will follow cash basis recognition.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13430
RBI Introduces Calamity Response Measures for Regional Rural Banks
The Reserve Bank of India has issued the Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Amendment Directions, 2026, introducing measures relating to banking services during declared calamities.
The amendments permit Regional Rural Banks to operate affected branches from temporary premises and provide banking access through satellite offices, extension counters, and mobile banking facilities, subject to regulatory intimation and approvals.
The directions also require banks to restore ATM services at the earliest and arrange alternative cash access facilities in affected areas. Further, banks may open small accounts for displaced persons lacking identification documents and may provide waiver or reduction of fees and charges for customers in calamity-affected areas for up to one year.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13434
RBI Updates Credit Risk Evaluation Norms for Regional Rural Banks
The Reserve Bank of India has issued the Reserve Bank of India (Regional Rural Banks – Credit Risk Management) Second Amendment Directions, 2026, introducing a new provision relating to credit risk evaluation.
The amendment requires Regional Rural Banks to consider the potential impact of natural calamities and similar events on borrowers while carrying out credit assessments.
The amendment directions will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13438
RBI Revises Stressed Asset Resolution Framework for Rural Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Rural Cooperative Banks – Resolution of Stressed Assets) Amendment Directions, 2026, introducing a revised framework for resolution of borrower accounts impacted by natural calamities and similar external events.
The amendments provide for restructuring measures for eligible borrowers, including rescheduling of payments, conversion of interest into credit facilities, and additional finance based on viability assessment. The framework also includes board-approved relief policies, coordination through SLBC/UTLBC/DCC mechanisms, prescribed implementation timelines, and reporting requirements through the CIMS portal.
Consequential amendments have also been issued relating to Credit Risk Management, IRACP, and Responsible Business Conduct for Rural Cooperative Banks.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13425
RBI Revises IRACP Norms for Rural Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Rural Cooperative Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, introducing revised norms linked to restructuring under Chapter IV-A of the Resolution of Stressed Assets Directions, 2025.
The amendments allow eligible restructured borrower accounts to retain or regain “Standard” asset classification upon implementation of a resolution plan. The directions also prescribe additional provisioning requirements of 5% for restructured accounts, including repeated restructuring cases, subject to specified limits and reversal conditions.
Further, interest income for accounts restructured under Chapter IV-A will be recognized on an accrual basis, while certain repeatedly restructured accounts will follow cash basis recognition.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13429
RBI Introduces Calamity Response Measures for Rural Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Rural Cooperative Banks – Responsible Business Conduct) Amendment Directions, 2026, introducing measures relating to banking services during declared calamities.
The amendments permit Rural Cooperative Banks to operate affected branches from temporary premises and provide banking access through satellite offices, extension counters, and mobile banking facilities, subject to regulatory intimation and approvals.
The directions also require banks to restore ATM services at the earliest and arrange alternative cash access facilities in affected areas. Further, banks may open small accounts for displaced persons lacking identification documents and may provide waiver or reduction of fees and charges for customers in calamity-affected areas for up to one year.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13433
RBI Updates Credit Risk Evaluation Norms for Rural Cooperative Banks
The Reserve Bank of India has issued the Reserve Bank of India (Rural Cooperative Banks – Credit Risk Management) Second Amendment Directions, 2026, introducing a new provision relating to credit risk evaluation.
The amendment requires Rural Cooperative Banks to consider the potential impact of natural calamities and similar events on borrowers while carrying out credit assessments.
The amendment directions will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13436
RBI Revises Stressed Asset Resolution Framework for NBFCs
The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Resolution of Stressed Assets) Amendment Directions, 2026, introducing a revised framework for resolution of borrower accounts impacted by natural calamities and similar external events.
The amendments provide for restructuring measures for eligible borrowers, including rescheduling of payments, conversion of interest into credit facilities, and additional finance based on viability assessment. The framework also includes board-approved relief policies, prescribed implementation timelines, and reporting requirements through the CIMS portal.
Consequential amendments have also been issued relating to Credit Risk Management, IRACP, and Responsible Business Conduct for NBFCs.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13424
RBI Revises IRACP Norms for NBFCs Under Calamity Resolution Framework
The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, introducing changes linked to the revised stressed asset resolution framework for borrowers impacted by calamities.
Under the amendments, borrower accounts restructured under the calamity resolution framework may continue to be classified as ‘Standard’, including accounts that turned NPA between the occurrence of the calamity and implementation of the resolution plan. The Directions also prescribe additional provisioning requirements of 5% on outstanding debt for restructured accounts, including additional provisioning for repeated restructuring.
Further, the amendments specify conditions for reversal of additional provisions and clarify the norms for interest income recognition on restructured accounts.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13428
RBI Introduces Calamity Relief Measures for NBFC Customers
The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Responsible Business Conduct) Amendment Directions, 2026, introducing provisions relating to customer relief measures during declared calamities.
Under the amendment, NBFCs may, at their discretion, provide relief measures such as waiver or reduction of fees and charges for customers located in calamity-affected areas for a period of up to one year.
The amendment will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13431
RBI Updates Credit Risk Assessment Norms for NBFCs
The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Second Amendment Directions, 2026, introducing changes to credit risk evaluation practices for NBFCs.
Under the amendment, NBFCs are required to factor in the possible impact of calamities on borrowers while carrying out credit assessments.
The amendment will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13435
RBI Updates Stressed Asset Resolution Framework for AIFIs
The Reserve Bank of India has issued the Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Amendment Directions, 2026, introducing a structured framework for resolution of borrower accounts impacted by natural calamities and similar external events.
The amendments establish a dedicated framework for calamity-impacted borrowers, including defined eligibility criteria, committee-based assessment through SLBC/UTLBC/DCC, and prescribed timelines for invocation and implementation of resolution plans. Measures may include rescheduling of payments, restructuring of interest, and sanction of additional finance based on viability.
The framework also provides for consideration of insurance proceeds, government relief measures, and specified reporting requirements through the CIMS portal.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13437
RBI Revises IRACP Norms for All India Financial Institutions
The Reserve Bank of India has issued the Reserve Bank of India (All India Financial Institutions – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026, introducing revised prudential norms linked to the resolution framework for stressed assets impacted by calamities.
Under the amendments, borrower accounts under approved resolution plans may retain or be upgraded to ‘Standard’ classification upon implementation, including accounts that slipped into NPA during the interim period. Accounts under repeated restructuring may also continue to be classified as ‘Standard’ subject to specified conditions.
The Directions introduce additional provisioning requirements of 5% of outstanding debt for restructured accounts, including cases of repeated restructuring, along with defined conditions for reversal of such provisions. The amendments also specify income recognition norms, prescribing accrual-based or cash-based recognition depending on the account category.
The amendments will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13439
RBI Introduces Calamity Relief Provision for All India Financial Institutions
The Reserve Bank of India has issued the Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Amendment Directions, 2026, introducing provisions related to customer relief measures during declared calamities.
Under the amendment, All India Financial Institutions (AIFIs) may, at their discretion, provide relief measures such as waiver or reduction of fees and charges for customers in areas where a calamity has been declared, for a period of up to one year.
The amendment will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13440
RBI Updates Credit Risk Assessment Norms for All India Financial Institutions
The Reserve Bank of India has issued the Reserve Bank of India (All India Financial Institutions – Credit Risk Management) Second Amendment Directions, 2026, introducing updated requirements for credit risk evaluation.
Under the amendment, All India Financial Institutions (AIFIs) are required to factor in the potential impact of calamities while carrying out credit assessments of borrowers who may be affected by such events.
The amendment will come into effect from July 1, 2026.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13441
RBI Replaces 2018 Natural Calamity Relief Directions for Banks
The Reserve Bank of India has repealed the Master Direction on Relief Measures by Banks in Areas Affected by Natural Calamities (2018) for Scheduled Commercial Banks, effective July 1, 2026.
The repealed framework is replaced by updated Directions issued on April 29, 2026, covering stressed asset resolution, income recognition and asset classification, responsible business conduct, and credit risk management.
Actions taken under the repealed Directions will continue to be governed by the earlier framework, and related rights, liabilities, approvals, and proceedings will remain valid and enforceable under the repealed provisions.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13427
RBI Replaces 2018 Calamity Relief Framework for RRBs (Effective July 1, 2026)
The Reserve Bank of India has repealed the Master Direction on relief measures for Regional Rural Banks in areas affected by natural calamities (dated October 17, 2018), effective July 1, 2026.
The repealed framework will be replaced by new Directions issued on April 29, 2026 covering:
- Resolution of Stressed Assets
- Income Recognition, Asset Classification and Provisioning
- Responsible Business Conduct
- Credit Risk Management
All actions, approvals, rights, obligations, liabilities, and proceedings under the repealed Directions will continue to be governed by the earlier framework and remain enforceable as if the repeal had not taken effect.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13432
