RBI/2026-27/24
DOR.STR.REC.17/21-04-048/2026-27 April 27, 2026 Reserve Bank of India (Commercial Banks - Transfer and Distribution of Credit Risk) Amendment Directions, 2026 Please refer to Reserve Bank of India (Commercial Banks - Transfer and Distribution of Credit Risk) Directions, 2025 (hereinafter referred to as ‘the Directions’). 2. On a review, and in exercise of the powers conferred by the section 21 and 35A of the Banking Regulation Act, 1949, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified. 3. The Amendment Directions modify the Directions as under: (1) Paragraph 52A shall be inserted as specified below: “52A. For permitted transferees, the initial recognition as well as subsequent measurement of acquired loans will be as per Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026.” (2) Paragraph 53 shall stand deleted. (3) Para 70A of the Directions shall be inserted as below: “70A. The stressed loan acquired by banks shall be classified as purchased or originated credit-impaired financial asset (POCI) and shall be guided by POCI related guidelines contained in the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026 for the purpose of provisioning, initial recognition, subsequent measurement and relevant disclosures.” (4) Para 73 shall stand deleted. (5) Para 81 of the Directions shall be modified as below: “81. When the stressed loan is transferred to ARC at a price below the NBV at the time of transfer, bank shall debit the shortfall to the profit and loss account for the year in which the transfer has taken place.” 4. The above amendments shall come into force from April 01, 2027. (Vaibhav Chaturvedi)
Chief General Manager |