Current · Source: Reserve Bank of India · RBI/DOR/2026-27/36 · issued 27 Apr 2026 · ~1 min read
Quick answerRBI repeals 2025 income recognition, asset classification, and provisioning directions for commercial banks, replacing with 2026 directions effective April 1, 2027.
The rule, in the simplest words
The RBI is cancelling the 2025 rules about income recognition (how banks count money they earn), asset classification (how banks sort loans and investments), and provisioning (setting aside money for possible losses) and will use new 2026 rules starting April 1, 2027.
Anything a bank started or approved under the old 2025 rules before they were cancelled must still follow those old rules.
All commercial banks (banks that take deposits and give loans) need to read the new 2026 rules, see how they change their reports, and update their policies and procedures.
How it plays out — a real example
Rohit Sharma, a credit manager in Mumbai, opened the new 2026 directions on April 2, 2027, compared them with the old 2025 guidelines his team had used, and quickly revised the loan‑tracking sheet so the bank’s reports match the new rules, feeling confident that the bank stays compliant.
What changed
The Reserve Bank of India has repealed its 2025 directions on income recognition, asset classification, and provisioning for commercial banks. These directions will be replaced by new 2026 directions, which will come into effect on April 1, 2027. The repealed directions will still govern any actions taken or initiated under them before the repeal.
What it means for you
The repeal and replacement of these directions may impact how commercial banks recognize income, classify assets, and make provisions. Banks will need to adapt to the new directions, which could affect their financial reporting and regulatory compliance. The change aims to align with the public interest and may reflect updates in regulatory requirements or industry practices.
What you must do
Review the new 2026 directions on income recognition, asset classification, and provisioning
Assess the impact of the new directions on your bank's financial reporting and regulatory compliance
Update your bank's policies and procedures to align with the new directions
Who it affects
Commercial banks
❓ Common questions
Regulatory timeline
Stated effective dateeffective April 1, 2027
Decoded by BankPulse2026-06-17 15:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
When do the new directions come into effect?
April 1, 2027
What happens to actions taken under the repealed directions?
They will continue to be governed by the repealed directions
📜 Read the original circular — full text as issued by RBI
RBI/DOR/2026-27/36
DOR.STR.REC.20/21.04.048/2026-27
April 27, 2026
Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Repeal Directions, 2026
The Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby repeals Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Directions, 2025 (DOR.STR.REC.83./21.04.048/2025-26) issued on November 28, 2025, with effect from April 01, 2027. The Directions shall be replaced with Reserve Bank of India (Commercial Banks-Asset Classification, Provisioning and Income Recognition) Directions, 2026 issued on April 27, 2026, with effect from April 01, 2027.
2. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed Directions shall be deemed as governed by these Directions. Further, the repeal of these Directions shall not in any way prejudicially affect:
(1) any right, obligation or liability acquired, accrued, or incurred thereunder;
(2) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder; and
(3) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture, or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed.
(Vaibhav Chaturvedi)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2026-27/36 · issued 27 Apr 2026. The plain-English explanation above is BankPulse’s own independent summary.
Review the new 2026 directions on income recognition, asset classification, and provisioning
📜 Compliance
Assess the impact of the new directions on your bank's financial reporting and regulatory compliance
Update your bank's policies and procedures to align with the new directions
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Credit Manager at a bank this circular applies to (Commercial banks), your first concrete step on “RBI Repeals Income Recognition Directions” is: “Review the new 2026 directions on income recognition, asset classification, and provisioning” (RBI issued this 27 Apr 2026).
Circular: RBI/DOR/2026-27/36 -- RBI Repeals Income Recognition Directions
Issued: 27 Apr 2026
Action required: Review the new 2026 directions on income recognition, asset classification, and provisioning
Action required: Assess the impact of the new directions on your bank's financial reporting and regulatory compliance
Action required: Update your bank's policies and procedures to align with the new directions
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 02 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13396&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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