The Reserve Bank of India has issued Second Amendment Directions to its credit risk management framework for regional rural banks, adding a new Chapter IIA on Credit Risk Evaluation. The amendment requires banks' credit assessments to suitably factor in the possible impact of calamities on borrowers who may be affected by such events. The change is consequential to the Reserve Bank of India’s amendment directions on resolution of stressed assets for regional rural banks. It has been issued under sections 21 and 35A of the Banking Regulation Act, 1949 and takes effect on July 1, 2026.
Reserve Bank of India 2026-04-29
Reserve Bank of India requires regional rural banks to factor calamity impacts into credit risk assessments from July 1 2026
The Reserve Bank of India has issued Second Amendment Directions to its credit risk management framework for regional rural banks, introducing a new chapter on credit risk evaluation that requires credit assessments to factor in the possible impact of calamities on affected borrowers. The change, linked to earlier amendments on resolution of stressed assets for regional rural banks, is issued under sections 21 and 35A of the Banking Regulation Act, 1949 and will take effect on July 1, 2026.