Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026

RBI/2026-27/194
DOR.STR.REC.175/21-04-048/2026-27

                                                                                                                                 July 16, 2026

Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026

Please refer to Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Directions, 2025 (hereinafter referred to as ‘the Directions’).

2. A bank generally does not transact in immovable assets as part of its core business operations, other than in exceptional cases where it acquires such immovable assets in satisfaction of its claims on the borrower. In order to provide clarity on the prudential treatment of such specified non-financial assets including non-banking assets (NBAs), acquired by a bank through various mechanisms, it has been decided to issue prudential norms applicable in such cases.

3. On examination of the feedback received on the draft Directions issued on May 5, 2026 and in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.