The Reserve Bank of India (RBI), on March 10, 2026, issued the Reserve Bank of India (Asset Reconstruction Companies) Amendment Directions, 2026.
The following has been amended namely:-
• These Amendment Directions modify the Master Direction as under: Paragraph 4(11)(i)(c) shall be replaced by:
“(c) free reserves (excluding revaluation reserve) including quarterly profits.
Inclusion of quarterly profits shall be subject to the following conditions:
(i) The financial statements shall be subjected to limited review / audit on a quarterly basis by the statutory auditors.
(ii) Such profits shall be reduced by average dividend paid in the last three years and the amount which can be reckoned for inclusion would be arrived at as under:
EPt = NPt - 0.25 *D*t
Where:
EPt = Eligible profit up to quarter ‘t’ of the current financial year, t varies from 1 to 4
NPt = Net profit up to quarter ‘t’
D = average dividend paid for / pertaining to the last three financial years
Losses in the current year shall be fully deducted from Owned Fund;”
[Notification No. RBI/2025-26/231 DOR.CAP.REC.No.421/21.01.002/2025-26]
