RBI Clarifies Financing Norms for Multi-Unit Infrastructure Projects

The Reserve Bank of India (RBI) has amended the Commercial Banks – Credit Facilities Directions, 2025 to provide additional clarity on project financing norms. The amendments are effective immediately.

Under the revised directions, banks may finance independently viable units of a project as separate projects, provided each unit achieves its own financial closure and is independently appraised for standalone viability. Additionally, for electricity generation projects that include transmission (evacuation infrastructure), the requirement relating to transmission right of way may be determined in accordance with the specified provisions of the Directions.

These amendments provide greater clarity on financing multi-unit infrastructure projects and integrated power generation projects.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13559

RBI Updates Project Financing Norms for Small Finance Banks

The Reserve Bank of India (RBI) has amended the Small Finance Banks – Credit Facilities Directions, 2025, with immediate effect, to provide additional clarity on project financing.

Under the revised directions, Small Finance Banks may finance independently viable units of a project as separate projects, provided each unit has its own financial closure and is independently assessed for standalone viability. The amendments also clarify the assessment of right of way requirements for transmission infrastructure in electricity generation projects that include both power generation and evacuation facilities.

These changes provide greater clarity in financing multi-unit infrastructure projects and integrated power generation projects.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13560

RBI Updates Project Financing Norms for NBFCs

The Reserve Bank of India (RBI) has amended the Non-Banking Financial Companies – Credit Facilities Directions, 2025, with immediate effect, to provide additional clarity on project financing.

Under the revised directions, NBFCs may finance independently viable units of a project as separate projects, provided each unit has its own financial closure and is independently assessed for standalone viability. The amendments also clarify the assessment of right of way requirements for transmission infrastructure in electricity generation projects that include both power generation and evacuation facilities.

These changes provide greater clarity in financing multi-unit infrastructure projects and integrated power generation projects.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13561

RBI Updates Project Financing Norms for All India Financial Institutions

The Reserve Bank of India (RBI) has amended the All India Financial Institutions – Credit Facilities Directions, 2025, with immediate effect, to provide additional clarity on project financing.

Under the revised directions, All India Financial Institutions (AIFIs) may finance independently viable units of a project as separate projects, provided each unit has its own financial closure and is independently assessed for standalone viability. The amendments also clarify the assessment of right of way requirements for transmission infrastructure in electricity generation projects that include both power generation and evacuation facilities.

These changes provide greater clarity in financing multi-unit infrastructure projects and integrated power generation projects.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13562

RBI Updates Project Financing Norms for Urban Co-operative Banks

The Reserve Bank of India (RBI) has amended the Urban Co-operative Banks – Credit Facilities Directions, 2025, with immediate effect, to provide additional clarity on project financing.

Under the revised directions, Urban Co-operative Banks (UCBs) may finance independently viable units of a project as separate projects, provided each unit has its own financial closure and is independently assessed for standalone viability. The amendments also clarify the assessment of right of way requirements for transmission infrastructure in electricity generation projects that include both power generation and evacuation facilities.

These changes provide greater clarity in financing multi-unit infrastructure projects and integrated power generation projects.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13563

RBI Notifies Compliance Requirements Following UAPA Terrorist Designations

The Reserve Bank of India (RBI) has advised Regulated Entities (REs) to comply with the latest Ministry of Home Affairs (MHA) notifications designating 23 individuals as terrorists under the Unlawful Activities (Prevention) Act (UAPA), 1967.

In accordance with the RBI’s Know Your Customer (KYC) Directions, 2025, REs are required to screen their customer accounts against the updated Fourth Schedule of the UAPA, follow the prescribed procedures under the UAPA Order, 2021, and report any matching accounts to the Financial Intelligence Unit – India (FIU-IND) and the Ministry of Home Affairs (MHA). The circular also instructs REs to ensure ongoing compliance with any future amendments to Schedule IV of the UAPA.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13564

RBI Introduces Prudential Framework for Non-Financial Assets Acquired by Commercial Banks

The Reserve Bank of India (RBI) has amended the Commercial Banks – Resolution of Stressed Assets Directions, 2025 by introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired by banks during the resolution of stressed loans. The framework comes into effect from October 1, 2026.

The amendments define SNFAs as immovable assets acquired by banks in full or partial settlement of non-performing exposures and prescribe norms for their acquisition, valuation, disposal, accounting, and disclosure. Banks are required to establish board-approved policies covering acquisition criteria, recovery efforts, exposure limits, and disposal timelines, with a maximum holding period of seven years. The directions also require public auction-based disposal, prohibit the sale of such assets back to borrowers or related parties, and introduce dedicated reporting and disclosure requirements.

The framework aims to standardise the prudential treatment of non-financial assets acquired during the resolution of stressed assets across commercial banks.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13565

RBI Introduces Prudential Framework for Non-Financial Assets in Small Finance Banks

The Reserve Bank of India (RBI) has amended the Small Finance Banks – Resolution of Stressed Assets Directions, 2025 by introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed loans. The amendments will come into effect from October 1, 2026.

The framework defines SNFAs as immovable assets acquired by Small Finance Banks in full or partial settlement of non-performing exposures and prescribes norms for their acquisition, valuation, disposal, accounting, and disclosure. Banks are required to establish board-approved policies governing SNFA acquisition and disposal, including eligibility criteria, recovery efforts, exposure limits, and a maximum holding period of seven years. The directions also require valuation by independent valuers, disposal through public auction, prohibit the sale of such assets back to borrowers or related parties, and introduce separate reporting and disclosure requirements for these assets.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13566

RBI Introduces Prudential Framework for Specified Non-Financial Assets of NBFCs

The Reserve Bank of India (RBI) has amended the Non-Banking Financial Companies – Resolution of Stressed Assets Directions, 2025 by introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed loans. The amendments will come into effect from October 1, 2026.

The framework defines SNFAs as immovable assets acquired by NBFCs in full or partial settlement of non-performing exposures and prescribes norms for their acquisition, valuation, disposal, accounting, disclosure, and regulatory reporting. NBFCs are required to establish board-approved policies governing SNFA acquisition and disposal, including eligibility criteria, recovery efforts, exposure limits, and a maximum holding period of seven years. The directions also require valuation by independent valuers, disposal through public auction, prohibit the sale of such assets back to borrowers or related parties, and mandate disclosure of SNFAs as a separate balance sheet item along with reporting through the CIMS portal (or to the National Housing Bank for NBFC-HFCs).

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13567

RBI Introduces Prudential Framework for Specified Non-Financial Assets of All India Financial Institutions

The Reserve Bank of India (RBI) has amended the All India Financial Institutions – Resolution of Stressed Assets Directions, 2025 by introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed loans. The amendments will come into effect from October 1, 2026.

The framework defines SNFAs as immovable assets acquired by All India Financial Institutions (AIFIs) in full or partial settlement of non-performing exposures and prescribes norms for their acquisition, valuation, disposal, accounting, disclosure, and regulatory reporting. AIFIs are required to establish board-approved policies governing SNFA acquisition and disposal, including eligibility criteria, recovery efforts, exposure limits, and a maximum holding period of seven years. The directions also require valuation by independent valuers, disposal through public auction, prohibit the sale of such assets back to borrowers or related parties, and mandate separate disclosure of SNFAs in financial statements along with reporting through the CIMS portal.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13568

RBI Introduces Prudential Framework for Specified Non-Financial Assets for Urban Co-operative Banks

The Reserve Bank of India (RBI) has amended the Urban Co-operative Banks – Resolution of Stressed Assets Directions, 2025 by introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed loans. The amendments will come into effect from October 1, 2026.

The framework defines SNFAs as immovable assets acquired by Urban Co-operative Banks (UCBs) in full or partial settlement of non-performing exposures and prescribes norms for their acquisition, valuation, disposal, accounting, disclosure, and regulatory reporting. UCBs are required to establish board-approved policies governing SNFA acquisition and disposal, including eligibility criteria, recovery efforts, exposure limits, and a maximum holding period of seven years. The directions also require valuation by independent valuers, disposal through public auction, prohibit the sale of such assets back to borrowers or related parties, and mandate separate disclosure of SNFAs in financial statements along with reporting through the CIMS portal.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13569

RBI Introduces Prudential Framework for Specified Non-Financial Assets for Rural Co-operative Banks

The Reserve Bank of India (RBI) has amended the Rural Co-operative Banks – Resolution of Stressed Assets Directions, 2025 by introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed loans. The amendments will come into effect from October 1, 2026.

The framework defines SNFAs as immovable assets acquired by Rural Co-operative Banks (RCBs) in full or partial settlement of non-performing exposures and prescribes norms for their acquisition, valuation, disposal, accounting, disclosure, and regulatory reporting. RCBs are required to establish board-approved policies governing SNFA acquisition and disposal, including eligibility criteria, recovery efforts, exposure limits, and a maximum holding period of seven years. The directions also require valuation by independent valuers, disposal through public auction, prohibit the sale of such assets back to borrowers or related parties, and mandate separate disclosure of SNFAs in financial statements along with reporting to NABARD.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13570

RBI Issues Prudential Norms for Specified Non-Financial Assets in RRBs

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Regional Rural Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026, introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired by Regional Rural Banks in settlement of borrower dues.

Key Highlights

• Defines SNFAs as immovable assets acquired in satisfaction of borrower claims.
• Requires banks to adopt a policy for SNFA acquisition, governance, valuation, and disposal within seven years.
• Permits acquisition only for NPA accounts and prescribes valuation based on NBV or DSV, whichever is lower.
• Mandates disposal through public auction and prohibits sale back to borrowers or related parties.
• Requires separate disclosure of SNFAs in financial statements and reporting to NABARD.

Effective Date: October 1, 2026.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13571

RBI Issues Prudential Norms for Specified Non-Financial Assets in Local Area Banks

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026, introducing a prudential framework for Specified Non-Financial Assets (SNFAs) acquired by Local Area Banks in settlement of borrower dues.

Key Highlights

• Defines SNFAs as immovable assets acquired in satisfaction of borrower claims.
• Requires banks to adopt a policy for SNFA acquisition, governance, valuation, and disposal within seven years.
• Permits acquisition only for NPA accounts and prescribes valuation based on the lower of Net Book Value (NBV) or Distress Sale Value (DSV).
• Mandates disposal through public auction and prohibits sale back to borrowers or related parties.
• Requires separate disclosure of SNFAs in financial statements and reporting through the CIMS portal.

Effective Date: October 1, 2026.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13572

RBI Revises Income Recognition Norms for Specified Non-Financial Assets

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Second Amendment Directions, 2026, introducing revised income recognition norms for Specified Non-Financial Assets (SNFAs).

Key Highlights

• Unrealised interest or charges relating to the extinguished exposure before acquisition of an SNFA cannot be recognised as income.
• Any such unrealised income already recognised for SNFAs outstanding as of September 30, 2026, must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised.
• Income realised from an SNFA must be recognised as non-interest/other income in the financial year of receipt.
• Expenses incurred for the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

Effective Date: October 1, 2026.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13573

RBI Revises Income Recognition Norms for Specified Non-Financial Assets for Small Finance Banks

The Reserve Bank of India (RBI) has amended the Small Finance Banks – Income Recognition, Asset Classification and Provisioning Directions, 2025 to prescribe income recognition norms for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed assets. The amendments are linked to the Small Finance Banks – Resolution of Stressed Assets Second Amendment Directions, 2026 and will come into effect from October 1, 2026.

Under the revised framework, unrealised interest or charges relating to the extinguished exposure before acquisition of an SNFA cannot be recognised as income. Any such income already recognised for existing SNFAs must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised. Income realised from an SNFA must be recognised as non-interest/other income in the financial year of receipt, while expenses incurred towards the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13574

RBI Revises Income Recognition Norms for Specified Non-Financial Assets for NBFCs

The Reserve Bank of India (RBI) has amended the Non-Banking Financial Companies – Income Recognition, Asset Classification and Provisioning Directions, 2025 to prescribe income recognition norms for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed assets. The amendments are aligned with the Non-Banking Financial Companies – Resolution of Stressed Assets Second Amendment Directions, 2026 and will come into effect from October 1, 2026.

Under the revised framework, accrued but unrealised interest or charges relating to the extinguished exposure before the acquisition of an SNFA cannot be recognised as income. Any such income already recognised for existing SNFAs must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised. Income realised from an SNFA must be recognised as non-interest/other income in the financial year in which it is received, while expenses incurred towards the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13575

RBI Updates Income Recognition Norms for Specified Non-Financial Assets for AIFIs

The Reserve Bank of India (RBI) has amended the All India Financial Institutions – Income Recognition, Asset Classification and Provisioning Directions, 2025 to prescribe income recognition norms for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed assets. The amendments are aligned with the All India Financial Institutions – Resolution of Stressed Assets Second Amendment Directions, 2026 and will come into effect from October 1, 2026.

Under the revised framework, accrued but unrealised interest or charges relating to the extinguished exposure before the acquisition of an SNFA cannot be recognised as income. Any such income already recognised for existing SNFAs must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised. Income realised from an SNFA must be recognised as non-interest/other income in the financial year in which it is received, while expenses incurred towards the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13576

RBI Updates Income Recognition Norms for Specified Non-Financial Assets for Urban Co-operative Banks

The Reserve Bank of India (RBI) has amended the Urban Co-operative Banks – Income Recognition, Asset Classification and Provisioning Directions, 2025 to introduce income recognition norms for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed assets. The amendments are aligned with the Urban Co-operative Banks – Resolution of Stressed Assets Third Amendment Directions, 2026 and will come into effect from October 1, 2026.

Under the revised framework, accrued but unrealised interest or charges relating to the extinguished exposure before the acquisition of an SNFA cannot be recognised as income. Any such income already recognised for existing SNFAs must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised. Income realised from an SNFA must be recognised as non-interest/other income in the financial year in which it is received, while expenses incurred towards the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13577

RBI Revises Income Recognition Norms for Specified Non-Financial Assets for Rural Co-operative Banks

The Reserve Bank of India (RBI) has amended the Rural Co-operative Banks – Income Recognition, Asset Classification and Provisioning Directions, 2025 to introduce income recognition norms for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed assets. The amendments are aligned with the Rural Co-operative Banks – Resolution of Stressed Assets Second Amendment Directions, 2026 and will come into effect from October 1, 2026.

Under the revised framework, accrued but unrealised interest or charges relating to the extinguished exposure before the acquisition of an SNFA cannot be recognised as income. Any such income already recognised for existing SNFAs must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised. Income realised from an SNFA must be recognised as non-interest/other income in the financial year in which it is received, while expenses incurred towards the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13578

RBI Revises Income Recognition Norms for Specified Non-Financial Assets for Regional Rural Banks

The Reserve Bank of India (RBI) has amended the Regional Rural Banks – Income Recognition, Asset Classification and Provisioning Directions, 2025 to introduce income recognition norms for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed assets. The amendments are aligned with the Regional Rural Banks – Resolution of Stressed Assets Second Amendment Directions, 2026 and will come into effect from October 1, 2026.

Under the revised framework, accrued but unrealised interest or charges relating to the extinguished exposure before the acquisition of an SNFA cannot be recognised as income. Any such income already recognised for existing SNFAs must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised. Income realised from an SNFA must be recognised as non-interest/other income in the financial year in which it is received, while expenses incurred towards the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13579

RBI Revises Income Recognition Norms for Specified Non-Financial Assets for Local Area Banks

The Reserve Bank of India (RBI) has amended the Local Area Banks – Income Recognition, Asset Classification and Provisioning Directions, 2025 to introduce income recognition norms for Specified Non-Financial Assets (SNFAs) acquired during the resolution of stressed assets. The amendments are aligned with the Local Area Banks – Resolution of Stressed Assets Second Amendment Directions, 2026 and will come into effect from October 1, 2026.

Under the revised framework, accrued but unrealised interest or charges relating to the extinguished exposure before the acquisition of an SNFA cannot be recognised as income. Any such income already recognised for existing SNFAs must be reversed through the Profit and Loss account by September 30, 2027, to the extent it remains unrealised. Income realised from an SNFA must be recognised as non-interest/other income in the financial year in which it is received, while expenses incurred towards the upkeep of an SNFA must be recognised in the financial year in which they are incurred.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13580

RBI Consolidates Guidelines on Special Rupee Vostro Accounts (SRVAs)

The Reserve Bank of India (RBI) has issued a consolidated circular on Special Rupee Vostro Accounts (SRVAs), superseding earlier circulars to streamline the regulatory framework for settlement of cross-border transactions in Indian Rupees (INR). The revised framework allows authorised dealer (AD) banks to open SRVAs for overseas branches or foreign banks and use them for settlement of international trade in INR.

In addition to export and import transactions, all permissible current and capital account transactions under the Foreign Exchange Management Act (FEMA) may also be settled through SRVAs. The circular permits AD banks to open dedicated current accounts for exporters and importers to facilitate trade settlements. It also prescribes the funding sources for SRVAs, permits investments in eligible debt instruments as per existing RBI directions, and requires documentation and reporting in accordance with FEMA guidelines. The revised instructions come into effect immediately.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13581