Regulated entities (REs) are, in normal course, not expected to come into possession of non-financial assets in lieu of their regular lending operations. However, in exceptional cases, where the exposures become non-performing and legal or contractual remedies have been invoked, REs may, as part of recovery strategy, acquire ownership of an immovable asset furnished as collateral security. A controlled and timely disposal of such asset, on an arm’s-length basis, may enable the RE to maximise net recoveries while ensuring transparency and prudence in the recovery process.  To provide clarity on prudential treatment of such assets, (hereinafter called as ‘Specified Non-financial Assets’ (SNFAs)), the Reserve Bank of India (RBI) has today issued the draft "Prudential Norms on Specified Non-financial Assets (SNFA) Directions" for public comments.

Additional comments or any attachments may also be submitted by email at feedbackcrg@rbi.org.in.

Last date for submission of comments is May 26, 2026.

Draft Directions