The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Third Amendment Directions, 2026, effective October 1, 2026, amending the 2025 Directions. The amendment introduces a prudential framework for the acquisition, valuation, disposal, and disclosure of Specified Non-Financial Assets (SNFAs) acquired by Commercial Banks in settlement of stressed loan exposures. SNFAs may be acquired only against non-performing exposures (NPAs) on a non-recourse basis and must be initially valued at the lower of the extinguished exposure's net book value or the assets distress sale value. Banks are required to adopt a Board-approved policy
for the acquisition, management, valuation, disposal, and disclosure of SNFAs. The framework aims to strengthen prudential asset recognition, transparency, governance, risk management, and consistency in the resolution of stressed assets across the banking sector.
