The Reserve Bank of India (RBI) on May 05, 2026, issued draft Prudential Norms on Specified Non-financial Assets (SNFA) Directions.
The following has been stated:-
•The Reserve Bank of India (RBI) has issued draft guidelines on prudential treatment of Specified Non-Financial Assets (SNFAs) acquired by regulated entities during recovery of non-performing assets.
•Such assets can be acquired only when loans turn non-performing, and other recovery options are unviable, with partial cases treated as restructured exposures.
•SNFAs must be valued at the lower of net book value or distress sale value and periodically reassessed.
•A maximum holding period of seven years is prescribed, and sale back to borrowers or related parties is prohibited to prevent misuse.
•Regulated entities must disclose SNFAs in their balance sheets, and public comments are invited until May 26, 2026.
The detailed notification is given in the document below.
[Notification No.: 2026-2027/208]
