meta_id 3106188

On April 27, 2026, the Reserve Bank of India (RBI) issued Amendment Directions to the Reserve Bank of India (Commercial Banks – Treatment of Wilful Defaulters and Large Defaulters) Directions, 2025. The amendment modifies the timeline for commercial banks to classify borrowers as wilful defaulters following internal preliminary screening. Under the amended framework, if a wilful default is identified during internal preliminary screening, banks must complete the classification or declaration of a borrower as a wilful defaulter within six months of the account being classified as a non-performing asset (NPA). This classification process must follow the mechanism outlined in the original Directions and align with asset classification instructions contained in the Reserve Bank of India (Commercial Banks – Asset Classification, Provisioning and Income Recognition) Directions, 2026. The amendment is issued under Section 35A of the Banking Regulation Act, 1949, and represents a consequential update following the issuance of the new Asset Classification, Provisioning and Income Recognition Directions in 2026. The RBI determined the amendment necessary and expedient in the public interest. The amended directions apply to all commercial banks regulated by the RBI and will come into force on April 1, 2027, providing banks with a transition period to align their internal processes with the revised timeline requirements for wilful defaulter classification. REFERENCE: Reserve Bank of India. (2026). Reserve Bank of India (Commercial Banks – Treatment of Wilful Defaulters and Large Defaulters) - Amendment Directions, 2026. RBI/2026-27/28 DOR.STR.REC.18/20-16-001/2026-27.