The Reserve Bank of India issued directions to repeal the Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Directions, 2025 and replace them with the Reserve Bank of India (Commercial Banks-Asset Classification, Provisioning and Income Recognition) Directions, 2026. The repeal and replacement are both stated to take effect from 1 April 2027. Despite the repeal, actions taken or initiated under the 2025 Directions will continue to be governed by those provisions, and approvals or acknowledgments granted under the repealed Directions are deemed to be governed by the new directions. The repeal also preserves existing rights, obligations and liabilities, and does not affect penalties for contraventions or the ability to institute, continue or enforce investigations and legal proceedings as if the 2025 Directions had not been repealed. The replacement framework is scheduled to apply from 1 April 2027.
Reserve Bank of India 2026-04-27
Reserve Bank of India repeals its 2025 income recognition, asset classification and provisioning directions for commercial banks and replaces them with a 2026 framework effective 1 April 2027
The Reserve Bank of India has repealed the Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Directions, 2025 and replaced them with the Reserve Bank of India (Commercial Banks – Asset Classification, Provisioning and Income Recognition) Directions, 2026, both effective from 1 April 2027. Actions, approvals and acknowledgments under the 2025 Directions remain governed by those provisions, while existing rights, obligations, liabilities, penalties and related proceedings are preserved as if the 2025 Directions had not been repealed.