RBI issued amendment directions on December 4, 2025, reference number RBI/2025-26/128, DOR.STR.REC.336/21-04-048/2025-26, regarding Income Recognition, Asset Classification and Provisioning for commercial banks. This amendment, pursuant to the issuance of Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025, modifies the existing Directions by deleting Paragraph 117 under 'Chapter IV – Provisioning Norms'. Banks are now free to reverse released provisions or transfer them to the General Reserve. The amendment comes into effect on January 1, 2026. Contact Vaibhav Chaturvedi, Chief General Manager. Address: Department of Regulation, Central Office, Central Office Building, 12th/13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai - 400001. Tel No: 22661602, 22601000, Fax No: 022-2270 5691. Website: www.rbi.org.in
Key Entities Referenced
Reserve Bank of India: The central bank of India and the issuer of the amendment directions.
Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Directions, 2025: The primary directions being amended.
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025: A related document which led to the review and subsequent amendment.
Banking Regulation Act, 1949: The act under which powers are conferred to issue the directions.
भारतीय �रज़वर् बैंक
_________________________ RESERVE BANK OF INDIA ______________________
www.rbi.org.in
RBI/2025-26/128
DOR.STR.REC.336/21-04-048/2025-26 December 4, 2025
Reserve Bank of India (Commercial Banks – Income Recognition, Asset
Classification and Provisioning) Amendment Directions, 2025
Please refer to Reserve Bank of India (Commercial Banks – Income Recognition,
Asset Classification and Provisioning) Directions, 2025 (hereinafter referred to as ‘the
Directions’).
2. On a review, consequent to the issuance of Reserve Bank of India (Commercial
Banks – Concentration Risk Management) Amendment Directions, 2025, and in
exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation
Act, 1949 and all other laws enabling the Reserve Bank in this regard, the Reserve
Bank being satisfied that it is necessary and expedient in the public interest so to do,
hereby issues the Amendment Directions hereinafter specified.
3. The Amendment Directions modifies the Directions as under:
Paragraph 117 under ‘Chapter IV – Provisioning Norms’ shall stand deleted.
4. Pursuant to the above, a bank shall be free to reverse the released provisions or
transfer the same to General Reserve.
5. The above amendment shall come into force from January 1, 2026.
(Vaibhav Chaturvedi)
Chief General Manager
िविनयमन िवभाग, केंद्रीय कायार्लय, केंद्रीय कायार्लय भवन, 12वी/ं 13वी ंमंिज़ल, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400001
टेलीफोन/ Tel No: 22661602, 22601000 फै�/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
�हदं ी आसान ह,� इसका �योग बड़ाइए