The RBI has announced Second Amendment Directions for Commercial Banks, focusing on refining income recognition and asset classification procedures.
RBI Publishes New Guidelines for Commercial Banks
On July 16, 2026, the Reserve Bank of India unveiled the Second Amendment Directions for Commercial Banks, aimed at enhancing the standards of income recognition, asset classification, and provisioning.
This directive is part of a series of updates concerning the resolution of stressed assets in the banking system, upheld by sections 21 and 35A of the Banking Regulation Act. The RBI's mission is to bolster compliance and thereby enhance the overall financial stability of Commercial Banks.
Banking lawyers and advisors should closely monitor these amendments to effectively guide their clients through any necessary adjustments to their operational policies, ensuring their adherence to the revised standards.
Citations
- Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Second Amendment Directions (2026)