The Reserve Bank of India (RBI) issued amendment directions to its 2025 framework for Non-Operative Financial Holding Companies, updating how prudential norms apply to advances by linking income recognition, asset classification and provisioning requirements to the new 2026 directions for commercial banks. The amendments take effect from 1 April 2027. Paragraph 20 of the 2025 directions is modified to specify that prudential norms on income recognition, asset classification and provisioning for advances will be as set out in the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026. The amendment is issued under section 35A of the Banking Regulation Act, 1949.
Reserve Bank of India 2026-04-27
Reserve Bank of India amends Non-Operative Financial Holding Companies rules to reference 2026 commercial bank asset classification and provisioning norms from 1 April 2027
The Reserve Bank of India has amended its 2025 framework for Non-Operative Financial Holding Companies to align prudential norms on income recognition, asset classification and provisioning for advances with the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026. The change, issued under section 35A of the Banking Regulation Act, 1949, will apply from 1 April 2027.