The Reserve Bank of India, vide the Non-Banking Financial Companies – Resolution of Stressed Assets) Amendment Directions, 2026, has introduced a comprehensive framework for resolution of borrower accounts impacted by natural calamities and similar external events by inserting a new Chapter VI-A in the existing Directions, 2025. The amendment defines key terms such as “date of invocation” and “natural calamity”, mandates inclusion of detailed resolution policies in board-approved frameworks, and prescribes timelines for invocation (within 45 days) and implementation (within 135 days) of resolution plans based on recommendations of SLBC/UTLBC/DCC. It allows NBFCs to implement relief measures, including restructuring and additional finance, even suo motu, subject to borrower eligibility and viability assessment, while also providing for disclosure, reporting, and alignment with government relief measures. Additionally, the earlier provisions relating to special restructuring cases have
been rationalised by deletion of Part D of Chapter VI.
