The Reserve Bank of India has issued the Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026, updating the framework for non-banking financial companies so that loan asset classification and related provisioning requirements are determined under the income recognition, asset classification and provisioning (IRACP) directions. The amendment replaces paragraph 25(1) of the Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 to state that asset classification of individual loan assets and the consequent provisioning requirement shall be in terms of the Reserve Bank of India (Non-Banking Financial Companies – Income Recognition, Asset Classification and Provisioning) Directions, 2025. The change is described as consequential to the Reserve Bank of India (Non-Banking Financial Companies – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026. The amendment takes effect immediately.
Reserve Bank of India 2026-02-13
Reserve Bank of India amends NBFC credit facilities directions to align loan asset classification and provisioning with the IRACP directions
The Reserve Bank of India has updated the framework for non-banking financial companies through the Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026, aligning loan asset classification and provisioning requirements with the 2025 IRACP directions. This amendment, effective immediately, replaces paragraph 25(1) of the 2025 directions.