What changed
['RBI has modified Para 25(1) of the Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025, via the Amendment Directions, 2026.', 'Asset classification of individual loan assets and consequent provisioning requirement will now be in terms of the Reserve Bank of India (Non-Banking Financial Companies – Income Recognition, Asset Classification and Provisioning) Directions, 2025.', 'The amendment comes into force immediately.']
What it means for you
['This amendment ensures consistency in asset classification and provisioning requirements for NBFCs by aligning with the IRAC Directions.']
What you must do
- Review and update NBFC credit facilities policies to align with the amended directions.
- Ensure compliance with the new asset classification and provisioning requirements.
- Train staff on the updated guidelines and procedures.
Who it affects
Non-Banking Financial Companies (NBFCs)
What is the purpose of the amendment?
The amendment aims to align asset classification and provisioning requirements for NBFCs with the Income Recognition, Asset Classification, and Provisioning Directions.
When does the amendment come into force?
The amendment comes into force immediately.
What are the implications of non-compliance?
Non-compliance with the amended directions may lead to regulatory issues and potential risks to the financial system.