The Reserve Bank of India has issued a second set of amendments to its Commercial Banks – Credit Facilities Directions, 2025, updating the framework to rely on the new 2026 directions for asset classification, provisioning and related treatment, and removing one provision. Under the revised paragraph 25(1), asset classification of individual loan assets and the consequent provisioning requirements will be governed by the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026. Paragraph 84 is amended to provide that a project finance account may be classified as a non-performing asset at any time before the actual date of commencement of commercial operations (DCCO) based on record of recovery, in line with the 2026 asset classification directions. Paragraph 132 is amended to link the applicable risk weight and provisioning for the exposures covered by that paragraph to the Reserve Bank of India (Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026 and the 2026 asset classification directions, and paragraph 172(3)(ii) is deleted. The amendments come into force from 1 April 2027.
Reserve Bank of India 2026-04-27
Reserve Bank of India amends commercial banks credit facilities directions to align asset classification, provisioning and risk weights with 2026 frameworks effective 1 April 2027
The Reserve Bank of India has issued a second set of amendments to its Commercial Banks – Credit Facilities Directions, 2025, aligning asset classification, provisioning, income recognition and certain risk-weighted exposure treatments with its 2026 directions. The changes include revised provisions on project finance non-performing asset classification, updated cross-references to the 2026 capital charge and asset classification frameworks, and deletion of paragraph 172(3)(ii), effective from 1 April 2027.