Consequent to the Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Third
Amendment Directions, 2026, effective October 1, 2026, Commercial Banks are required to strengthen their Concurrent Audit framework to ensure compliance with the prudential norms governing Specified Non-Financial Assets (SNFAs). The scope of concurrent audit should include verification of the acquisition, valuation, monitoring and disposal of SNFAs, compliance with the Board-approved policy, adherence to the prescribed seven-year disposal timeline, prohibition on transfer to borrowers or related parties, and accuracy of regulatory disclosures and reporting. Any non-compliance or control deficiencies should be promptly reported to the appropriate management and governance authorities for corrective action.
