meta_id 3106007

On April 27, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026 (RBI/2026-27/25 DOR.STR.REC.13/07-01-001/2026-27). The amendment modifies the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025, and is issued under Section 35A of the Banking Regulation Act, 1949. The amendment introduces four key modifications to the existing directions. First, paragraph 25(1) is amended to align asset classification of individual loan assets and provisioning requirements with the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026. Second, paragraph 84 is updated to clarify that project finance accounts may be classified as non-performing assets (NPA) at any time before actual debt service coverage ratio (DCCO) achievement, in accordance with the 2026 asset classification directions. Third, paragraph 132 is revised to reference both the Reserve Bank of India (Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026 and the asset classification directions for risk weight and provisioning requirements. Finally, paragraph 172(3)(ii) is deleted in its entirety. These amendments apply to commercial banks in India and are designed to ensure consistency across the RBI's regulatory framework for credit facilities, asset classification, and capital requirements. The amendments become effective on April 1, 2027, providing commercial banks with a transition period to implement the necessary operational and compliance changes. **Reference:** Reserve Bank of India Notifications, April 27, 2026