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The Reserve Bank of India has repealed its 2025 directions on income recognition, asset classification, and provisioning for commercial banks.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 The repealed directions will still govern any actions taken or initiated under them before the repeal.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
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What happens to actions taken under the repealed directions?
They will continue to be governed by the repealed directions