The Reserve Bank of India issued the “All India Financial Institutions – Credit Risk Management) Second Amendment Directions, 2026” on April 29, 2026, under Section 45L of the RBI Act, 1934. These directions follow amendments relating to the resolution of stressed assets and aim to strengthen credit risk assessment frameworks of All India Financial Institutions (AIFIs). A key change is the insertion of a new Chapter II-A titled “Credit Risk Evaluation,” which mandates that AIFIs incorporate the potential impact of calamities on borrowers while conducting credit assessments. This ensures that lenders account for risks arising from natural or unforeseen disruptive events affecting borrowers’ repayment capacity. The amendment reflects RBI’s focus on enhancing resilience in credit evaluation practices and aligning lending decisions with real-world risk factors. The directions will come into force from July 1, 2026, and are issued in public interest to promote prudent risk management across financial institutions.
Reserve Bank of India
RBI/2026-27/75
DOR.STR.REC.64/21-04-048/2026-27 | Dated: April 29, 2026
Reserve Bank of India (All India Financial Institutions – Credit Risk Management) Second Amendment Directions, 2026
Please refer to Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.
2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the section 45L of the Reserve Bank of India Act, 1934 and all other laws enabling the Reserve Bank of India (hereinafter called 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
3. These Amendment Directions modify the Directions as under:
i. Chapter II-A shall be inserted as under:
Chapter II-A – Credit Risk Evaluation
5A. Credit assessments carried out by a AIFI shall suitably factor in the possible impact of calamities on borrowers who may be impacted by such events.
4. The above amendment shall come into force with effect from July 1,
(Vaibhav Chaturvedi)
Chief General Manager
