The Reserve Bank of India has amended its credit risk management directions for small finance banks to require banks' credit assessments to suitably factor in the possible impact of calamities on borrowers who may be affected. The change follows a related amendment to the framework on resolution of stressed assets for small finance banks. The amendment inserts a new paragraph 12A into the Small Finance Banks Credit Risk Management Directions. It takes effect on July 1, 2026.
Reserve Bank of India 2026-04-29
Reserve Bank of India requires small finance banks to factor calamity risks into credit assessments from July 1 2026
The Reserve Bank of India has amended its Small Finance Banks Credit Risk Management Directions to require credit assessments to factor in the possible impact of calamities on affected borrowers. The change, implemented through a new paragraph 12A and linked to earlier revisions to the stressed assets resolution framework for small finance banks, will take effect on July 1, 2026.