RBI Tightens Stressed Asset Rules For Banks, NBFCs | New NPA Norms From October 1, 2026

The Reserve Bank of India (RBI) has introduced stricter norms for banks and NBFCs to strengthen the resolution of stressed assets. Effective October 1, 2026, lenders will no longer be allowed to sell acquired stressed assets back to defaulting borrowers or related parties. Nachiket Kelkar, Business Today, explains that the RBI now treats the acquisition of specified non-financial assets (SNFAs) strictly as a last-resort recovery measure, applicable only after an account becomes a non-performing asset (NPA). Banks must also frame clear policies for acquiring and disposing of these assets, with a maximum disposal period of seven years.